Profile picture for user349666

Please help!! How much should I offer for this house?

I have been looking for house a a few weeks. I recently looked a house with 3 bd and 2 ba and like it. It is newly listed. Asking price is $520,000. There was one comparable sale available for reference (exactly same floor plan, size and in the same neighborhood). However, I am having a hard time to figure out a fair price to put in the offer. Below are the differences between the two (the one sold = A; the one for sale=B). Please help!! Thank you so much!!

1. both are 1,400 sqft. A has a total of 5,500 sqft LOT SIZE, B has 4,000 sqft. That said, A's yard is 1,500 sqft bigger.....

2. A has updated kitchen flooring (wood flooring instead of tile). A's two bathrooms are very nicely updated as well (flooring, counter, lights & sinks). A's windows are all new as well, double-pane. A had newly painted the living room and master bedroom.

A was sold for $515,000 a week ago, initially listed at $520,000. B was listed three days ago and asking for $520,000. B is in a good condition, move-in ready, just not as new and updated as A.

Can anyone please advise me how much I should put in as the fair price to offer? I am thinking about making offer for B for $460,000 - $470,000.. .I am a first-time buyer, had no experience before. I don't want to insult the seller by making a too-low offer nor I would want myself to get an overpriced house, so to speak....:)


Thank you !!!
  • May 14 2012 - Los Angeles
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Answers (11)

Dear User,
You give a lot of information, however, I would not venture to offer a suggestion to you, unless I am in on every detail of this purchase and working as your buyer agent.
Los Angeles is a city of individual and unique neighborhoods, what will sell for 1 Million in one area, would only go for 300,000 in "another". Take my advice and retain a good buyer agent!
You will be glad you did!

  • June 08 2012
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it depends on how many offers they have and how you rate the house.

your agent should give you a CMA report so you have a better understanding about the market.

there are ways to offer a low price and accept by the seller but you have to offer better terms on the contract.

agent should always present your offer to the seller even if your price is low

any offer is not a guarantee to be accept by the seller. So ask yourself if seller reject your offer then do you have other backup choice?

good luck to you,

  • May 15 2012
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Profile picture for Ofe Polack
I think this type of discussion should take place between your buyer agent and you, with all the other comps in front of you both.  Unless you are paying cash, I suggest that you also get a pre-approval to ensure you are within your price range.  As you said, you are a first time buyer, and you do have a buyer agent, why don't you trust your agent then...?  If you do not feel the agent is providing you with good advice, change buyer agents.  You may need to lose a few properties before you come to the realization that what your buyer agent was telling you was right.
  • May 15 2012
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Well, I think you're going about this the wrong way.

I think buyers should go out and look at all the houses in their price range, and buy the best one. If you didn't see the other house, then it's hard for you to use it as a comparable.

Appraisers work this way for two reasons: one is, they can't go in and see the homes that have already sold (and they're not going to go and see all the available inventory for a $300 appraiser fee), the other is, their job is to compare this sale with other recent sales.

You, on the other hand, can't buy those other houses, you can only pick from what's on the market. So find the best house you can afford, and buy it!

All the best,
  • May 14 2012
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A buyers agent in your local market can help you and the seller pays the agents commission so there is no reason to not have a professional on your side. A local agent can tell you what homes have been selling for in your market and better advise youa s to what a good offer would be.

Hope this helps!

Best Regards,
Robert Adams
Broker/Salesman
LVrealestateHELP Team at
Rothwell Gornt Companies
  • May 14 2012
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The ultimate decision is up to you. You're not going to ask the shoe salesman how much you should pay for a pair of shoes. There are just too many factors to determine what you should do. It's possible that House "A" sold for too much or too little. House "A" may have had things wrong that you aren't aware of. An appraiser will tell you their opinion of what the appraised value of a property is. Your Realtor can tell you what their opinion of the Market Value of the house. You are the only person who can determine how much you should offer. When I have a client who loves a home and really wants it to offer the maximum they are willing to pay. If your maximum is $470,000 are you going to be disappointed if the house sells to some one else for $471,000? The worst buyer is one who gets emotionally attached. The bottom line is that there will be another home if you don't get this one. There always is.
  • May 14 2012
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Profile picture for user349666
I have a buyer's agent...She is kinda kicking the ball back to me and ask me to determine...She said $500,000 which I believe is a little too high in this situation, when A was only sold for $515,000 with a much bigger yard, end unit, a lot more updates...As I am trying to discuss with her about my thoughts, she guided me to another direction and had me consider about the properties in the nearby city...I didn't understand why....

Thank you for your help!
  • May 14 2012
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Get a local agent to act as your buyer's agent, especially if you are a first time buyer.

[off topic.  Deleted by Zillow  moderator]
  • May 14 2012
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Profile picture for wetdawgs
An offer at 90% of asking price  three days after a home goes on the market is not likely to fly, in fact, may be low enough that you get no response.    If the house had been on the market for several months, it may be a different situation.

Ask your buyer's agent for some input as to what the 1500 in lot size would make a difference.   Lack of updated bathrooms and hardwood in the kitchen doesn't justify a $50,000 lower price.
  • May 14 2012
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Talk to your realtor please..! If you do not have one, I would strongly suggest finding a buyers agent..
  • May 14 2012
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Profile picture for Cindy Quinton
Is there a reason you don't want to use a buyer's agent?
  • May 14 2012
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