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Making an offer on a house


Alezia

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My bf and I have spotted a end unit row townhouse that we like. Although we can afford much much more, we want to save money on not paying interest over 20-25 years.

 

The girl who owns the house overvalued her listing price by a lot. She wants around 260K for it. My agent pulled us a history of similar houses sold in the neighborhood in the past year. They all range between 221-253. If you remove that single house at 253 which is rather the exception and further away, the range is really 221-237.5. Average being 230.

 

I would say that although her house looks more like the ones valued at the higher end like 237.5, she's asking way too much. The other people selling their homes in that upper range were listing them at around 240-245, but she listed hers for 260.

 

What do you think would be a resonable first offer to make on such house? I was thinking 235, my bf said 230, his sister said 220. I have no clue how to do such offer, but 30K under her listing price seems a bit odd. Is it normal?

We have no "must sell house" condition either.

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End units usually go for more. The comps you mentioned are a good indication on what the unit will sell for.

 

I think making an initial offer at 230K is okay now (considering the housing market). You can offer whatever you want. Just be careful not to insult the seller with a lowball offer.

 

If you really want the unit, keep in mind that 260K spread out over a 30 year fixed mortgage rate is not that much different than 230K.

 

Happy house hunting,

hosswhispra

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I'd start at 230 and go up from there. If she's not coming down from 260, I'd go up to 235 MAX. Be prepared to wait a little bit before having your agent make an offer.

 

If need be, you can tell her the results of your research. Also if possible, get an appraisal done and work off of that.

 

In the end, if she doesn't budge, she doesn't budge..so be prepared to look for alternatives (unless you've got time and can wait her out).

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We're definitely not in a hurry. We might go see the house builders as it seems to be better value for your $$. The higher range were also end-units so I figured it might be good.

 

"If you really want the unit, keep in mind that 260K spread out over a 30 year fixed mortgage rate is not that much different than 230K."

 

The only reason we would get this unit is so we don't have to go for a 30 year fixed mortgage. Our aim is to get a comfortable house for four and pay it off real fast so we can then build our "dream house". We would rather do that then pay the bank tons of interest on 30 years.

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When my boyfriend comes back, I think I will agree with him on offering the 230K. Nothing seems to be selling lately, as the market was hotter during the spring but I have not seen much get sold now. I don't see how I could offer more than the max range, especially since her unit doesn't have all the upgrades (AC, new windows etc...) the the one at the higher end of the range did.

 

I've looked at the builders website, and we can get something quite nice and brand new for 260K. We have to pay our apartment till November anyways (unless we sublet), so no hurry on that point of view.

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Ask your agent to look at the mortgage history, if its that high above the comps she may actually owe that and not be able to budge.

 

Be wary of new home builders, the low price is a very basic one to lure you in, they make money by up selling once you're hooked. If you go that route you should still use your agent, she can negotiate for you and they are less likely to bs you if shes at all meetings with them.

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