Home Buying in 60626>Question Details

Jill, Home Buyer in Rogers Park, Chicago,...

A 1 bed 1 bath condo is listed for about $225,000. What's the lowest bid I can put in to start?

Asked by Jill, Rogers Park, Chicago, IL Tue Feb 10, 2009

It is the single most expensive 1/1 property listed in the area, and in the last six months, the most any 1/1 property in the neighborhood closed for was $190,000, with the rest grouping around $150,000. The condo in question does not have a lake view or anything that should set it apart and increase the value so substantially. Is $170,000 too low an opening bid? What's the lowest bid I can start with without putting off the seller completely? My Realtor was not enthused about the $170, which is why I'm asking here. Help!

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Answers

16
Wayne Beals’ answer
If it won't break your heart to lose it, you have nothing to lose. Make an offer where you are comfortable and you may make the seller's day!

Maybe the seller is price where they are because they are highly leveraged into the property and need a high sale to clear the mortgage. If this is the case, anything is better than nothing, especially if the seller is feeling the weight of the mortgage and a short sale is the eventual reality.

Best of Luck...and yes, your agent is obliged to present whatever offer you make.
2 votes Thank Flag Link Thu Feb 12, 2009
After your second input......
Your Agent/Realtor is obligated to present any offer to the Seller you want presented....
The Seller of course can just flat out reject it..... But if you want to see what happens go for it, and see
how the seller reacts. Your Agent can present it (and I often do!) as your first offer with willingness to negotiate, if you are afraid that the seller might be put off, although a seller should be happy to get a written offer, and try to negotiate to somewhere where both parties can meet and feel comfortable with.

That's why I asked you earlier if you yourself would be comfortable with the around 190 K mark.
Good Luck!
Edith YourChicagoConnection
edithsellshomes@gmail.com
2 votes Thank Flag Link Thu Feb 12, 2009
I would offer $150,000 and see what happens. If your realtor is upset, fire them and find another.
1 vote Thank Flag Link Thu Aug 20, 2009
Another question that you didn't--but perhaps should have also--asked is, "What's the highest amount that I should offer?" And the answer is that you shouldn't offer more than for what that property will appraise.
1 vote Thank Flag Link Wed Mar 4, 2009
Jill,

If your best judgment is that the property is worth somewhere near $170k, then offer that or slightly below it.

Don't pay any attention to the seller's feelings - they have nothing to do with the value of the property apart from the seller's own mind.

Your agent is obligated to present any offer you make and you should insist that s/he do so.
Web Reference: http://yochicago.com
1 vote Thank Flag Link Wed Feb 11, 2009
I agree with Laura and Ken who responded before....
In general terms your Realtor should provide to you a cma and it seems that you know a little about the market.
But there must be reason why you like THIS property and not others, and here I am assuming that you have seen other units at a lower price you did not want to make an offer on.... So put your decision and the condition and location and size of the unit in perspective, the ones you have actually seen.

Ask your Realtor's advice, your Realtor should have a good feeling why this one is listed so much higher than other units, either he sees good reasons for it or he does not, but that would help you discuss it.

Then I do agree with Laura's answer..... and I always tell my Sellers and offer is an offer, take it seriously, and make your decision....
So think it over a little..... And the seller can reject your offer straight out, he can come back with a counter
not even close to your initial offer, or accept (unlikely .... but...)

think about it is this property so much better than all the others you have seen, so does it deserve more money!!!! Then Look asking price 225 K your want to offer 170 K and I am assuming you do not think the seller will accept 170 K but negotiate with you.... Am I right? Well then the two of you are55,000 $ apart at the start of the negotiations....Now let's assume you are negotiating back and forth 3000 up 2000 down etc.
But let's think from the start without going too much back and forth, could you live with splitting the 55,000 in half, i.e. would you be happy with a sale price around 197,500 $ +
Of course, that does not mean the Seller would be..... Just a way to think about it for you...
Hope this helps you think it through a bit.... But make sure that this is the best property for YOU, and write on a list what it is that you like more in this property than the others

Edith YourChicagoConnection and Northern Illinois Expert
Century 21 SGR
edithsellshomes@gmail.com
1 vote Thank Flag Link Wed Feb 11, 2009
Jill-


After seeing the comparables and explaining the market, I always let me clients know that they have to be comfortable with their offer and what they ultimately pay for a home, after all it is their money. It sounds like you have a price in mind and rightfully so. There are only 3 things that can happen with an offer....1. A seller may accept an offer 2. A seller may counter an offer or 3. A seller may reject an offer.

Offer what you feel comfortable with and prepare yourself for one of the three outcomes.

Good Luck!
1 vote Thank Flag Link Wed Feb 11, 2009
You agent should do a comparative market analysis (CMA) on the unit for you so you can see what comparable properties have sold recently. Properties on Trulia and Zillow may have sold a long time ago. Only the MLS will provide the true up to date data on whats sold recently with in the last 6 months. If its a high rise your agent should check on what 1 bed/baths have sold for recently there first if any.
0 votes Thank Flag Link Fri Mar 15, 2013
That indeed does sound WAY overpriced - 225,000 for a 1bed/1bath in Rogers Park? Whoa!

My first question to you would be: If it is that overpriced, and it doen't have a good view, etc. then why are you wanting to purchase it?

Secondly: Has your Realtor done a market analysis on it for you? You may want to have him or her pull some "comps" (comparable properties that have sold recently) to help evaluate price.

If you really love it, you can offer anything you want. My guess is that it's that grossly over-priced because the seller owes too much on it to take anything less. Have your Realtor find out what is owed on the mortgage to determine this.

Or, better yet, just have your Realtor submit a very low bid on the property and see what the heck happens...you never know.

I hope that's helpful to you!

If you have any questions, or want to chat further about this, don't hesitate to pick up the phone and give me a call or text me, at: 773-710-8818

Best of luck! :)

Sincerely,

Matt Diehl
Licensed Realtor
Coldwell Banker
773-710-8818 (call/text)
Web Reference: http://mattdiehlrealtor.com
0 votes Thank Flag Link Sat Apr 28, 2012
If its located in Rogers Park a 1/1 at $220,000 is way over priced. My experiance 1/1 mid to low 100's, 2/2 high 100's to low 200's and 3/2 mid 200's.
0 votes Thank Flag Link Wed Mar 4, 2009
Realtor did provide a CMA and all kinds of other info/research/etc., which is how I know about the other values and closing costs and whatnot.

It seems like no one else is even looking twice at the property. The Realtor selling was visibly desperate to sell.

The reason I'm looking to bid on this particular one is because I like it best for actually living in it. It fits my taste and the layout is very much how I like to live and entertain and whatnot, plus its features suit my needs, etc. But if/when I move 5, 10, 20(??? who knows!) years down the road, I'd like it to be a good investment, too, and I don't think the asking price is a good investment (I think my Realtor agrees with me there). I AM still looking at other places and won't be heartbroken if this one doesn't work out, but I would love a better sense of actual dollar amounts for reasonable price in today's market.
0 votes Thank Flag Link Wed Feb 11, 2009
I would weight the most recent closings with more weight. The market may have shifted substantially in the last six months.

I am also assuming that you've seen some other 1 bedroom offerings in the area. How does this unit compare with what else is available? If the seller has priced well, buyers will respond. If not, you may be the only contract at the table, which gives you more leverage.

Also, ask your agent to justify the lack of enthusiasm. You need to know why they believe that your offer should be higher. Maybe there's something your missing.
0 votes Thank Flag Link Wed Feb 11, 2009
Jill,

Can you let me know why this unit is of interest to you when there are many others on the market at a lower price? Let us know what this unit offers over others on the market and maybe then we can give you better advice on price.

Good luck, Ken Dooley. http://www.kendooley.com/my-blog/
Web Reference: http://www.KenDooley.com
0 votes Thank Flag Link Tue Feb 10, 2009
The biggest issue I see here isn't your offer but your agent. Fire them! Your the boss here and don't feel obligated to no one except your wallet.Find someone who can give you the service you deserve. If I was your agent I would do a through comparative market analysis of the property. Then go over the data and give you my advise as far as what I see what the market value is for that property. Then it would be up to you as to how you would want me to write the offer for you.
You just need someone to do the research and provide you with enough info so that you know if your making the right offer for you.
0 votes Thank Flag Link Tue Feb 10, 2009
I agree with Matt: make the offer that makes sense to you.
0 votes Thank Flag Link Tue Feb 10, 2009
Jill,
It is tough to say with out having any knowledge as to where the place is compared to the other condos that have sold. But look at the comps that have sold in that building. If things were selling around 150K, then by no means is 170K a low offer. It doesnt matter what you Realtor is or is not enthused about. It is about were you feel comfortable with your offer. I hope you the best of luck.

Matt Laricy
Americorp Real Estate
0 votes Thank Flag Link Tue Feb 10, 2009
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