Making An Offer On A House..

[herenthere]

After a year of serious home shopping, my partner and I have found our dream home. It's an older home, in prime condition. We both knew when we walked thru the front door, that this was it.

The house is being sold be the owners, without the aid of a real estate agent.
We will have our lawyer oversee the transaction to protect our interest.

Now our question. Most sellers have set their asking price, to include some money that they are willing to come down on. Is there a percent a a figure that you can expect the selling price to be reduced.

In all honesty, we would make a full price offer, but if we can save a few bucks, all the better.

The home is in turn key condition, and we even really like the decor of the home.
Any advice guys???

Shaun

 

[Nonimus]

Go as low as you can - the more money in your bank the better for you! Think swimming pools!

 

[UrbanBOYS]

Don't go too low, though ... you don't want to risk offending them and / or someone else making a better offer and getting the house !

 

[Nonimus]

Here's an old Chav-trick:

Do they have any pets? You could always make them an offer they can't refuse...

 

[GayBoyKellyCfan]

Aww, the dog even looks sad. Poor thing.

 

[sherman]

Start low you can always go up.....Good Luck

 

[Nonimus]

Start low you can always go up.....Good Luck

Why didn't anyone tell me that when i was 14?

 

[Orlandude]

I was in a similar situation about 5 years ago. First off, if there is to be any reduction off the asking price, that should definitely be determined before an offer is made. A seller does not ALWAYS have a percentage they are willing to knock off the asking price. Some sellers are not willing to lower the price at all. It's all in your negotiation with them prior to making a firm offer, especially in a "For Sale By Owner" situation where you don't have a realtor as the negotiator. In my case, the only thing that was stopping me from buying the house (everything else was perfect) was that I wanted an allowance made on the kitchen appliances. They were old and I didn't want them and they were coming with the house. I told the seller that was all that was stopping me. The seller agreed to give me a $3000 allowance at closing and I had my attorney include that as part of my offer on the house. The seller accepted my offer, we closed and the title company issued me a check for $3000 from the sellers proceeds at closing. So basically I got the house for $3000 less than the selling price but also had to go out and buy new appliances.

Talk with the seller and get a feel for how low they might go, keeping in mind that others may be interested in the house. Only you know if that is the hosue for you, how bad you want it and what you are willing to pay for it. I assume you will have or have had a professional appraisal done on the house before you close the deal. Also a termite inspection if that is applicable in your area. I would also find out things like what it's going to cost for homeowners insurance, property taxes and any homeowners association fees. Owning the house is much more than just the selling price. There are all the ongoing costs after the sale.

 

[Txgoodoldboy]

Have you noticed how fast other houses in the area are selling ? If houses aren't moving fast, that will give you an idea. The national media says it is a buyers market, but that depends on your area. I would offer 20% off the selling price, but that would depend if houses are moving slowly. Then, they will probably come back with an offer of 10% lower than selling price. If houses are moving fast and that is the house you want, start at 10% off.

Most people will price the house with the knowledge that they will have to bargain with the buyer. But there is always the chance that someone will offer full price.

 

[tccia1]

Well you didnt mention the asking price so it makes it a little more difficult to say what i would offer, but just as an example if i were looking at a house that they wanted 180,000 in my area with the houses available like they are i would probably only offer 165,000.. but there are a lot of factors like how many homes are for sale in the area what similar houses are actually selling for etc.

 

[looseliam]

I've found when house hunting, when it's by owner, they're not in any particular hurry. They can hold off until they get the asking price.

There is, however, something to be said to finding the perfect house at the perfect time with a reasonable cost.

I'm not a fan of paying sticker price, but if the price is reasonable, and you both like it, go for it.

Also, if you're using a local realtor, he or she would be able to best advise you on how much of an offer to make.

And then there's the home inspection routine, but I shan't go into that.

 

[uflyguy]

If its in good shape and not a fixer upper or has anything really bad with the decor, that isnt going to help with them wanting to drop the price much. On the other hand, people do usually figure an over price unless they are in a hurry to sell and dont want to play around and just get rid of it.
Is the house in a neighborhood that has a newsletter or website? Ours used to have realtor listings that showed asking and actual selling prices. See if you can find out info this way. If not, check some realtor websites in your area and see if you can get a feel for the market. If most houses are being sold under price, you can get an idea for the overall neighborhood rate that is being reduced.
Right now in Florida they said there were 9 sellers for every buyer. On my street alone on the drive to the entrance there are 7 houses for sale out of about 40. If there are a lot of sale signs in the area you might have a good chance of getting them down.
I wouldnt make a ridiculous offer, but come down enough that they can make a counter offer that drops the price some, but both of you get close to what you're looking for. You already said you're willing to pay full price, so anything off will be a bonus right?
Good luck. Let us know how it turns out.

 

[marcmanus]

Hey Shaun,

I'm a Realtor. When negotiating with a FSBO (for sale by owner), you should find out what the comparable homes in the surrounding area (within a mile or 2) have sold for. Take the average sales price and knock off 5-6% which is a typical Realtor commission. FSBO's figure they're gonna save when they don't use a Realtor, in reality, they don't.
I don't know where you live, but in most markets the tides have turned and it is no longer a sellers market. Sellers in my area negotiate. . .alot if they want to sell.
Your other option would be to call a Realtor! Most FSBO's will pay a lowered commission if a Realtor brings a qualified buyer. . .you wouldn't be paying the commission and you'd have a professional to negotiate for you.

Good luck!

 

[herenthere]

Gee... hope it's not the same house herenthere is looking at. [/QUOTE]


IT'S MINE...IT'S MINE!!!!!

WHERE DO I SIGN??? IT'S MINE!!!!!!

 

[kev]

At the end of a purchase agreement, there is a sheet where you can write in things...sort of an addendum sheet.

ALWAYS write this in: "This entire agreement is contingent upon approval by the buyer's attorney."

This will leave you an "out" if something comes up on which only a sharp attorney can advise you.

 

[Nonimus]

I take it no-one has ever bought a house from a Chav then!

 

[FPNY]

I'm a realtor too, I think it is sound advice to check the comparables in the area. Negotiating a property can be tricky, you don't want to insult them with a super low offer, you want to try to open a dialog with them. I think that offering 10% below what they are asking is a good starting point, just be sure to get across to them that you are interested in a dialog. You said you would be willing to pay asking because it is the house of your dreams, don't lose the house of your dreams for a few thousand dollars, you will kick yourself in the end. No pun intended!