Home Buying in 10466>Question Details

David Lazarus, Home Buyer in Yonkers, NY

House is $380,000, 25% down, with a 30 year fixed loan. Work needed, kitchen needs to be redone. What is a decent offer I give to start negotiations?

Asked by David Lazarus, Yonkers, NY Mon Oct 28, 2013

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Answers

14
I recommend you consult with a Real Estate Agent that has experience in the area you are looking to buy.

Import factors on making an offer include recent sales in the area for the same type of property and how badly you want the property.

Edgar Diaz Molineros
United Northern Mortgage Bankers
2105 Williamsbridge Road, 2nd Floor
Bronx, NY 10461
c. 646.302.4765
e. emolineros@unitednorthern.com
1 vote Thank Flag Link Tue Nov 5, 2013
It costs you nothing to work with a realtor. Your question is easily handled. I can be reached at 914-393-8044. Stillman Brokerage, Bob Meyerson
1 vote Thank Flag Link Tue Oct 29, 2013
If you don't have an agent, consider the idea; does the price already reflect the necessary work...in order to determine a fair offer review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there.
1 vote Thank Flag Link Mon Oct 28, 2013
3 things you must consider

1. condition of entire house
2. location
3. what prices are homes in similar area going for.
If you need a true educated , experienced realtor call me 347-961-5394
http://www.angelogonzalez.org
1 vote Thank Flag Link Mon Oct 28, 2013
David,

Are you currently working with a buyers agent? Its very important to work with a buyers agent in todays market, there are many different steps that needs to be taken when purchasing a home and a good buyers agent will be able to guide you and walk you throughout the entire process and potentially save you thousands of dollars throughout the transaction. Feel free to reach out to me when you have some time.


Sincerely, 
Antonio Sanchez
Exit Realty Search
Licensed Real Estate Salesperson
3928 E. Tremont Avenue
CELL: 347-320-0673
FAX:    347-202-4966

antonio@exitrealtysearch.com
http://www.lovingmytown.com

#RENTAL
#RELOCATIONSPECIALIST
#FIRSTTIMEHOMEBUYERS
#VALOANS
#203K LOANS
#SHORTSALES
#LISTINGAGENT
#BUYERSAGENT
0 votes Thank Flag Link Mon Nov 11, 2013
David,

If you're looking to make some repairs and renovate the kitchen, I'd recommend a renovation loan and you'd only need a minimum of 5% down; obviously 25% works too. It's hard to determine a competitive offer without knowing more about the property and its local market. Please give me a call at your earliest convenience so we can discuss the property in greater depth along with weighing out all of your options.

Kindest regards,

Paul F. Marzolla
Sr. Mortgage Advisor
(201) 957-6768
0 votes Thank Flag Link Mon Nov 11, 2013
David,

I suggest you work with a Buyers Agent to represent you and get you the information you need to make a respectful and appropriate offer.

We say everything is negotiable in Real Estate but every market is different and Homes are going into contracts fast or have multiple offers.

Don't miss your window of opportunity! Consult with a local expert in that area.

Best of Luck!


Millie Valentin
Sales Specialist and Tax Consultant
Exit Realty Search
3928 E. Tremont Avenue
Bronx, NY 10465
http://www.millievalentin.com

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0 votes Thank Flag Link Fri Nov 8, 2013
If the asking price reflective of the condition when ARV is calculated.
Without this information, any response is wishful thinking.
-
If you do not know the REAL values (the real values can not be found on Zillow or Trulia) you may find great benefit in consulting with those who assist in the purchase and sale of dozens of NY homes every year.
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If you are serious you will pick up the phone and call one of the agents who have responded.

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
Move to the Front of the Line (http://FirstLookHomes.com)
0 votes Thank Flag Link Thu Nov 7, 2013
David

Send me your email, i will send you some comps, ideally you want to understand the market activity for that area before you begin negotiations. Also email me the address and I can accurately advise on the estimated value of the property versus the sale price

Good luck, if you need help, please let us know

Claudia Barnes (msctheclosingagent@gmail.com)
Nadia Barnes (nbmovewithme@gmail.com)
Coldwell Banker Gumbo Realty
0 votes Thank Flag Link Thu Nov 7, 2013
Well what we need to do is start the negotiating process. When your agent submitt the offer they should include the coat of expected repairs as the bases of the offer, this way the sellers will less offended by the offer. On average save my buyers 30 to 40 thousand dollars. Anything between 75 to 85 percent offer to asking price is a good start. If you need any further assistance with this offer please feel free to contact me directly.
Bruce McIntyre
Bruce.mcintyre@pantigagroup.com
646.588.1720
0 votes Thank Flag Link Tue Oct 29, 2013
Well what we need to do is start the negotiating process. When your agent submitt the offer they should include the coat of expected repairs as the bases of the offer, this way the sellers will less offended by the offer. On average save my buyers 30 to 40 thousand dollars. Anything between 75 to 85 percent offer to asking price is a good start. If you need any further assistance with this offer please feel free to contact me directly.
Bruce McIntyre
Bruce.mcintyre@pantigagroup.com
646.588.1720
0 votes Thank Flag Link Tue Oct 29, 2013
David,

One thing I learned from the beginning of my career; NEVER tell the buyer what to bid (of course, show them comps) and NEVER tell the seller what to ask (of course, show them comps).

Please ask your Realtor to show you recent sales of similar properties within the same zip code, school district and preferably, immediate neighborhood.

These comps are what an appraiser is going to be looking at for you to be mortgaged. It is the only method that counts.
0 votes Thank Flag Link Mon Oct 28, 2013
How much is it worth.

House price doesn't matter.

Amount down doesn't matter.

Type of loan doesn't matter.

What you need to know is: (1) What is the house worth in its present condition (based on comps)? (2) How much in repairs is needed, and (3) What will the house be worth after it's fixed up?

That tells you how much you CAN pay for it.

Example:

It's priced at $380,000. Other houses in similar condition have sold for $345,000. You pay no more than $345,000. You probably should offer less.

Or...same details as above. It needs $35,000 in work. Once finished, it'll be worth $390,000. Consider getting a 203(k) loan (which includes rehab costs). That'll cover you up to $390,000, which means that the house itself might get a pre-sale appraisal of $365,000.

But without knowing what it's worth now, what it'll be worth after repairs, and what the repairs will cost, you simply can't make an offer.

Your Realtor can provide more information.
0 votes Thank Flag Link Mon Oct 28, 2013
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
A Repaired Fair market value of the house will have to first be determined. Then , the work should be quantified. Meaning Kitchen renovations $15k. Other renovation needed? Are these needed renovations? or renovations to go in line with the market area? It is fair to take into account a reasonable return on the kitchen work, up to 100%. Thus, if it needs 15K, then 30K can be deducted from the REPAIRED Fair Market Value. The asking price, may or may not be priced accordingly.

It does help, that you are not asking for a seller's concession. This again, also depends on the market, if a seller's concession is prevalent. However, you are still seeking financing, thus, not much of a discount in that area ( cash 30 day close is king) .

How do you get the repaired fair market value? well , this is where a broker or agent should assist you.
Preferably someone who is familiar with values, inventory, trends, and have done a few CMA's or BPO's in the area over the last 6 months...

There really is NO rule of thumb, such as 10% less than asking, under asking, etc. Some markets, today, have values over asking.

without knowing specifics of the house, repairs, values, competition, days on market, etc. etc, , It is difficult to give a blind number .

I just sold a 2 family in 10466. I had a finance price of $390k and a cash price of 300K. The house needed updating and repairs.
0 votes Thank Flag Link Mon Oct 28, 2013
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