Home Buying in Lawrenceville>Question Details

Rvalere, Home Buyer in Lawrenceville, GA

How much can I offer for a house listed at $189,000 if I am paying cash?

Asked by Rvalere, Lawrenceville, GA Wed Dec 23, 2009

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9
Depends.

IF the home is worth $250,000, you might do well to offer full price, if it's worth $150,000, then you might offer that.

Your offer should depend on what the home is worth not what you can get away with.
1 vote Thank Flag Link Wed Dec 23, 2009
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
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Hi Rvalere. Okay, right up front. . .I'm going to try to word this so that I don't get nasty emails from fellow agents or consumers - just trying to "explain" our situation.

You've had some really great agents respond to you and although I didn't study all the responses, I don't think any of them is willing to say what I am about to say. We try to avoid controversy on these Q&A websites while offering general guidelines about the do's and don'ts of real estate. I have seen other consumers say things like "why do these agents skirt around answering the question". The reason is that sometimes to answer a specific question like this one is putting our license in jeopardy and quite frankly, against the law.

I hope that none of my fellow agents think that I am pointing fingers because that is not what I am trying to accomplish with this post. Most of the time when I see questions like this I simply click past them - it's just too dangerous to bother responding and I get it that consumers think we are not being helpful when we don't give specific advise. But, we really cannot.

Agents are only supposed to "advise" people whom they represent. If you have no signed agreement with an agent, no one is representing you. If you ask a question on a site like Trulia that is specific and relates to a transaction, how will you determine whether or not to heed the advise you are so freely given?

I see many agents responding here who have done exactly what we should do in this situation - offer general tips on arriving at the answer. To give you a number is foolhardy and unprofessional.

If you are this unsure about what you are doing perhaps it is a good sign that you need to be represented by your own buyer agent. Talk to friends, co-workers and relatives to find out if they can recommend an agent to you.

Acting on the this type of specific advise that you receive from someone on the internet is worth exactly what it cost you.
Web Reference: http://www.mysouthhomes.com
0 votes Thank Flag Link Fri Feb 5, 2010
If bank owned I would start with offer $151000 if you have a individual owner selling a house I would offer $181000 but still you have so many other things to look at.
0 votes Thank Flag Link Thu Feb 4, 2010
Cash can be a great asset for you because so many people are having a hard time getting mortgage loans approved. I can't tell you how much to offer without knowing the particulars about the property. How long has it been on the market? Is it a foreclosure or short sale? What do the past sales in the same area show? When I work as a Buyer's Agent, I look at a lot of information and work with the Buyer to help them decide what they want to offer. Your Agent should be able to do that for you. I hope that you have a Buyer's Agent. It doesn't usually cost you anything since the Listing Agent splits their commission in Georgia. A Buyer's Agent is able to find out all the relevant information to help you get the best deal possible.
Regards, Mary Jane McDaniel - Broker
0 votes Thank Flag Link Sat Dec 26, 2009
Without knowing the particulars of the property it's impossible to provide you with good information.

If the home is underpriced you may need to offer more than the asking price....in the current market, most would assume your offer should be lower than the asking price.

The best information may be derived from a close examination of the recently sold comparables from this property. A local real estate professional should be able to provide you with the information and support you require.

Best wishs
The Eckler Team
0 votes Thank Flag Link Wed Dec 23, 2009
Since you have cash, you have flexibility in other terms beyond sales price. While I would recommend at least a 7 day due diligence period to inspect the property thoroughly, you could offer a lower price while promising not to request repairs on the property. This is particularly useful if you can save money doing repairs yourself.

There are a lot of ways to structure a deal, and I'd recommend offering about 12-15% off the price initially, and do not ask for any closing costs. In today's market, an all cash buyer is welcome.

Using a Georgia Realtor--specifically, sign a contract for the purchase of this home with the agent so the agent negotiate's for you--gives you access to Georgia Association of Realtors' contracts and forms that will make the purchase easy and give you significant protections in the buying process. They can even be used when the sale is For Sale By Owner.
0 votes Thank Flag Link Wed Dec 23, 2009
Rvalere,

You can offer anything you like, but the seller may not like it.

The best way to determine value is to use a realtor and get a market report on the area that provides you with the sales data.

This will help you define a offer price that will be a good deal for you and not offensive to the seller.
0 votes Thank Flag Link Wed Dec 23, 2009
We just don't have enough information to help you here. A competent Realtor would present the comparable sales numbers to you for similar properties. For the moment, let's assume that the value is $189,000. Most sellers in our area price their homes with a bit of negotiating room or with the idea of assisting the buyer with some of the closing costs. If that is true in your area, then you could look to discount the asking price about 6%.
0 votes Thank Flag Link Wed Dec 23, 2009
Hi Rvalere,
Congrats on finding a home you like. You can often get a better price on an all cash deal. First you need to research the comprable properties that have recently sold in the area of the home you have found. This will give you a better understanding if the home was priced correctly at the time of listing. Then do a comparison based on condition and features and make your offer accordingly. I always reccomend working with a buyers realtor to respresent you and handle your research and negotiations. If you need further assistance please feel free to call.

Carla Donaghy
Virtual Properties Realty
404-457-3889
0 votes Thank Flag Link Wed Dec 23, 2009
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