Profile picture for mrsfapd

How low should your first offer on a home be in this economy and with no competition?

I am a first time home buyer and I found a house that I really want. It is a new construction that has been on the market for almost two years and the price has been reduced a few times (the last being about three months ago). No houses have sold in that area in the last two years and the house right next door recently went up for sale for $175. The house that I want (the new construction) is going for $215. What should I ask for this house? I dont feel comfortable spending more than $205 for this or any house... Is $205 resonable? If the seller does not want to go as low as $205 what should I do? Thank you in advance for all and any advice!
  • February 08 2011 - Conover
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Answers (8)

Best Answer

Profile picture for Al McCaw
If the result you want is $205k, then your first offer with your realtor should be $195k. Don't worry about if you will hurt the builder's feelings. Why?

First, this is only business. It's not personal. Second, the seller reserves the right to counter your offer. It's standard procedure.

The seller will most likely counter your offer to $210k with conditions. At this point, you can still counter the counter offer! Your counter offer should be $200k, etc. In the end, you should come pretty close to your goal. However, you have to ascertain that the price you want coincides with the appraised value for loan purposes.

If you are in Las Vegas, contact me to be your negotiator. I'll be more than happy to get you the lowest possible price. Click my picture to get my contact info.

  • February 09 2011
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Profile picture for Sharon Lewis

It sounds as if you are not using a Realtor, why not? They are trained to guide you in transactions. Its not just about the offer, its about everything, have you taken into account closing costs? How about doing a home inspection? Who is going to be your closing attorney, is there a warranty on the house, how long. My to do list for clients purchase and closing is over 200 items.
Is the house next door comparable, down to granite in the kitchen, size of yard etc? Did you know that most times the buyers agents fee is already figured into a new home sale, and its only worth a few 'points' Use a realtor, good luck

  • February 11 2011
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My first question is always, "will the market support the listed price?" If yes, then the negotiating approach I suggest to clients is much different. We can offer lower than the asking price, but seek to get closer to the number by including closing cost requests, etc. If the price cannot be supported, then I make an offer that it will support and provide the supporting documentation to the seller, In today's market, this is a very beneficial approach for my buyers. Hope this helps, and good luck on finding your new home.
  • February 09 2011
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Low enough to buy it, not so low you'll fail.
  • February 09 2011
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That is hard to say. You need to have your Realtor (and if you do not have one get one on your side) to get you comparable sales information in the area. This is the only way to make an informed offer and feel comfortable that you are getting the best deal possible given the housing situation in your area,
  • February 09 2011
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Mrs. Fapd

I would have your agent make the offer you feel comfortible with and see how the builders responds. The worst thing that could happen is they reject your offer. There are plenty of homes on the market and if you really want this one you could always make a counter-offer.

I hope this helps...Good Luck!
  • February 08 2011
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It is hard to say the price now because without any recent sales the market has changed in two years.  Depending on your area it likely went down in price.  If you are comfortable with 205 I would get a realtor to help you establish market value for the home.  The home listed for 175 might be a short sale, bank owned or a situation in which they are ready to let it go for cheap.

Good luck with everything and get a professional to help so you don't overpay and also to get a home you love.

  • February 08 2011
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Have your lender/realtor communicate your offer to the seller.  They ought to be able to guide you in the right direction.

You want it to be high enough that you generate interest but yet you need to be sure you can afford what you offer.

Good Luck.
  • February 08 2011
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