Profile picture for DanaTrivino

Buying in Orlando Florida!

My husband and I found a home but it is listed at $200,000. We feel it is overpriced because the home has not ever been updated since it's build date in 1987. It is a 4/2 with just under 2,200 sq.ft. but it is in rough shape and needs a fair amount of work...new garage door, TONS of landscaping, brand new kitchen and new baths. What is a fair offer because our current realtor is not very aggressive and he wanted to come in at $190,000 even with all the work that needs to be done. There are updated homes in the neighborhood marketed in the neighborhood in the $190s.
  • May 30 - Orlando
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Answers (10)

Profile picture for DanaTrivino
All viable options.  We made an offer on this property today so we shall see.  We didn't lowball, we made a competitive offer based on comps.  Anywhoo, what makes you say that 1987 construction is superior?  We are first time homebuyers so we are looking to learn as much as possible =).  Anything we should look out for during inspections?
  • May 31
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Profile picture for wetdawgs
So, there are several things you can do:

1.  You can buy one of the updated homes.
2.  You can offer what you want to offer and see what happens.  No seller has to accept any offer, even at full asking price.
3.  You can wait until the seller drops his/her price to a realistic price.

I'm sure there are others, but those are the major ones.
  • May 31
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Profile picture for DanaTrivino
We definitely don't want new construction.  We want character and sturdy construction.  The kitchen and baths are gut jobs and I am not kidding.  There are updated homes with fresh renovations and new roofs etc. that are listed in the neighborhood for $193,00 and $199,000.  This house has original everything and hasn't been maintained.  Everything is dingy and cracked/chipped etc.
  • May 31
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Profile picture for wetdawgs
If you are buying a 1987 house, you aren't going to be getting 2014 standards of design and construction.  (My humble opinion is that 1987 construction is far better than the average new home I'm seeing put together.)    Are the kitchen and baths solid and reasonably functional?   Major landscaping?   What you will learn is that remodeling kitchens, baths, and landscaping are not going to return dollar for dollar.   In a related vein, if a kitchen remodel is going to cost $30,000, you can't deduct $30,000 from the cost of the home.   Perhaps the current status doesn't meet your sense of design/taste, but that doesn't mean it isn't functional.

I would be more concerned about deferred maintenance.   Although you've mention that it hasn't been touched since then, you didn't mention specific concerns.   Deferred maintenance is what makes a house fall down.

If you want a brand new home, look at new construction (and then calculate how much you'll really have to spend to get blinds, landscaping etc).    If you want a totally remodeled home, look at those exclusively.  If you want to remodel yourself because you have the skills and experience, then buy appropriately.   If it is solid and functional, you can do it step by step as your budget allows.



  • May 31
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Profile picture for DanaTrivino
Hi all!! Thanks for the answers...we ended up firing our realtor and going with a new one which I was very hesitant in doing because the realtor we were with prior helped us to obtain a mortgage.  I am now concerned that after firing said realtor he will convince our lender to pull our pre-approval away from us?  Can this happen?  

Anyway, here are some more specifics on the property it is in the Rose Hill (Phase 2) neighborhood, zip code 32818.  It is TOTALLY outdated and needs a kitchen remodel, both bathrooms need remodeling, major landscaping, and the garage door needs replacing.  Also, we don't know about the roof yet and how old that is? When I tell you out dated, I mean that it was built in 1987 and hasn't been touched or maintained since then.  It does have a pool that is in good shape. 
 
I would love some more feedback.

Thanks!!
  • May 31
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Profile picture for wetdawgs
If the home has been on the market for many months, then a low offer may fly.   If it has just been  listed in the last few weeks, chances are good a low ball offer won't fly.    It never hurts to try, the offer is yours and your agent is only providing advice (but if too low, don't be surprised if the agent doesn't want to take the time to write the offer).

You are doing the right thing comparing recent sales of similar size and location to the home in question.  





  • May 30
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Dana,

It is a tough call to give you an answer without a specific property to look at.
I say this knowing when most people say Orlando it could be downtown, East, West, North and South Orlando. And some even consider nearby cities as Orlando as well.... so I would need to know more to give you an opinion. 
So to say if your agent is aggressive or not is hard without looking at the specific address. I will say this. Many parts of Orlando are selling closer to $100 a square foot. The property info you provided shows roughly $86.36 per square foot meaning to meet the average sales price of much of Orlando the home "could" be $30k under priced. 
The fact that many homes marketing in the neighborhood at $190,000 could easily be short sales, or properties that are no longer on the market. (it depends on where you are seeing these other properties). Some websites fail to adequately update sold properties in a timely manner.....

Mr. Harris is correct, a good agent should have / could have provided you a market analysis on the property you are interested in. They also should have backed up their reason for suggesting the $190,000 offer, such as there could already be multiple offers on the home or maybe your offer has a request for seller contributions or other factors that affect your real net offer.  The other option is maybe your agent is suggesting the real value is $190,000 but that doesn't mean you have to offer $190,000.

There are many times I may tell a client that I believe the value to be XYZ, but you can make any offer that you feel comfortable with and my suggestion is simply one that I believe gives you the best opportunity to secure the property. I usually add the caveat that if you offer less than my suggestion then you risk the chance of losing out on the property (especially in a multiple offer situation). 

In short, I suggest you ask your current agent to back up their price suggestion. They may have additional details they have yet to share, or failed to communicate adequately their justification of pricing. I will also say that properties priced in this price range are moving quickly within the areas that I regularly work and are hard to find. 

I can easily re-do a kitchen, garage door and landscaping for near $10k using some sweat equity quite potentially getting your home 10% under market value based on the information you provided. But is sounds more like you are not that happy with your agent or there could be a communication issue which sours any real estate deal. The right agent should at least meet your expectations and definitely should be capable and willing to explain and justify their numbers. I wish you luck if you elect to move forward and remember you may offer what ever you feel the value of the home is worth. What your current agent is suggesting is simply their opinion. You at the end of the day are the one signing the contract and paying the mortgage.
  • May 30
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In Florida almost all agents are "Transaction Brokers" who just facilitate a transaction and offer no fiduciary duties of loyalty, confidentiality or full disclosure to either party.  My first question would be to find out who the agent is really working for and is this their listing? Every buyer needs to find a buyers agent that you can rely on.

It is unfortunate that you don't trust your agent enought to take their advice and are instead trying to seek an opinion that is impossible to give. Expecting your agent to be aggressive is not the answer. But I think that he should give data and reason why he thinks that $190K is reasonable.  Coming in too low on a home that is still fresh on the market will result in the home being sold to someone else.

Regarding value:

You are just going by what you think which may not be accurate.  There are many factors to determine value.

1.  Location. A home in a great neighborhood is worth more than one 6 blocks away that is close to the tracks.

2.  Size.  this is a large home with a list price of $90 a square foot.  Frankly that price is low for  2,200 square ft. in Orlando.

3.  Condition.  While you say the home is built in 1987 and dated, the condition may be acceptable to most and maybe not that bad.  If the condition is really rough, most lenders will not finance.

4.  Supply and demand. Don't kid yourself, this does count.  What else is available in 2200 square feet for less than $200K?. A limited supply always drives the price up and I would guess that this home if in a good neighborhood will draw interest.

I think you need to discuss your concerns with your agent and get more information from him.

Eve.
  • May 30
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Dana-

Being that you are the one actually purchase the house and that your realtor is just assisting you with the transaction, I would suggest having him write the offer for what you feel the house is worth. If you don't think its worth 190K, don't offer that much.

In addition if you don't like how he/she is performing for you. Fire them and find someone that will provide you with the service you want, like Robert said.
  • May 30
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I have a realtor who is in Orlando and is very aggressive. If you don't like your current one, then you don't have to stay with them. There should have been a market analysis done which would substantiate your claims as well, and can be delivered with your offer for support.
  • May 30
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