Home Buying in Cranford>Question Details

Pamela Pol, Home Buyer in Cranford, NJ

How much to offer on home that's been in the market for six months?

Asked by Pamela Pol, Cranford, NJ Tue Dec 25, 2012

What should I offer on a home in cranford nj. It's priced at 425 but has been on the market for six months. Is 360 too low

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Joan Congilose’s answer
Ask your realtor to show you comparable closed sales prices of similar homes nearby & base your offer on that. Some sellers are from the old school and overprice their home so that they have room to negotiate which only results with them having their home on the market longer than it should be. If the closed sales are much lower than their asking price just submit your offer & see what happens. sometimes you may just get lucky & get a yes.
0 votes Thank Flag Link Wed Jan 2, 2013
I echo the voice of others. Your agent can produce the pricing analysis to guide you.

Certainly time on the market is a consideration. If the property has been listed at this price for six months - especially through our healthy spring market - then it is overpriced. If it were not, they would be done.

However, if the current price is the result of a recent price reduction, then the price may not be so well tested. This level of detail is available in the archives of the MLS, which is accessible to agents.

A price based on the facts of the market is the best starting point for a successful negotiation.

Good luck to you!!

Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Tue Sep 16, 2014
Your best move would be to have your Realtor run a CMA to determine what comparable homes have sold for. Then make your offer at or below that figure.

Looking at your example, if it's been on the market for 6 months and is priced at $425 (unless there's been a very recent price drop), it's overpriced. Problem is: We don't know how overpriced it is. As for $360,000--if you want to make an offer at that amount, make the offer. One thing to consider, though: Although it's unlikely, $360,000 may be too high.

Example: I was making an offer on an investment property. Realistically, based on the comps (poor condition, 2 bed/1 bath, inexpensive area) it was worth about $12,000. I made an offer below that amount. The seller responded that she wanted $55,000 for the property. Now, let's back up. If I'd first asked the seller what she'd wanted and she said $55,000, I might have though it'd be a great bargain at $20,000. But if I'd offered $20,000 and it had been accepted, I'd have been greatly overpaying for the property.

Point is: The asking price has NOTHING to do with the value of the property. You or your agent have to do research, determine what the property is worth, and then make an offer.
0 votes Thank Flag Link Tue Sep 16, 2014
Don Tepper, Real Estate Pro in Burke, VA
If a house has been on the market for 150 days and it cost 181000 how much should I put a offer for
0 votes Thank Flag Link Tue Sep 16, 2014
Realtor® Realtor® REALTOR®. Has the property been price corrected during these 6 months?
0 votes Thank Flag Link Wed Dec 26, 2012
You can not really base an offe ron how long a home has been on the marlet. you need to assess what it is worth and base your offer on that. you need to know if the asking priceis above market value, at market value or already way under market value You need to find out if there has been any offers, the seller may owe too much and cant go that low, they may have tunred down offers that wer elower already. Save time and money bvy a little research before placing an offer. a good buyer agent can easily guide you
0 votes Thank Flag Link Wed Dec 26, 2012
Hi Pamela,

Your Realtor should be advising you on what the home is worth and where to begin negotiations. They have access to all of the market information in your area. On the other hand it is important that you offer what you feel the home is worth and what you feel comfortable with. At the end of the day you are the only one that has to live with your mortgage. As a Realtor I am always here to advise my clients and coach them, but they make the game-time decisions!
0 votes Thank Flag Link Wed Dec 26, 2012
If you have a realtor, let him/her run the comps in the area and find out what other like homes have sold for. A lower offer is not necessarily always the best way to get the best price. I often review some of the different ways we can approach an offer with my clients. Starting low may not be the solution to getting the best price. Lots of luck with this and if you don't already have a realtor, I'd be thrilled to help!

Lorena Barbosa
David Realty Group
0 votes Thank Flag Link Wed Dec 26, 2012
Establishing a negotiation strategy depends on a number of factors in addition to days on the market, such as what the comparable homes in the neighborhood are selling for, is the property a short sale/foreclosure, are there currently any competing offer, have there been any recent price reductions. All of these factors should play a part in determining a negotiation strategy designed the best price for the home.

For example, if buyers in the last 3 months have paid $450,000 for similar homes it may call for a different strategy than if comparable homes have recently been purchased for $370,000.

Also, keep in mind that a significant amount negotiated off of the asking price does not always equate to a better deal. I've had clients that we've negotiated $40,000 off of asking price and clients that have paid asking price yet both purchases equate to almost equally good deals on a home.
0 votes Thank Flag Link Tue Dec 25, 2012
Well, the only way to find out if 350 is too low, is to make the offer and see what the seller says!

it doesn't really matter what anyone here thinks......and really, no one here can have an opinion on a house they know nothing about!

It sounds as though you are not working with an agent - otherwise, they could give you a sense of market conditions and recent closed sales. Armed with that information - YOU, yourself, could make an informed decision on this home's value.

When all is said and done...... you are the best judge as to what the house is worth (to you)......along with the appraiser when the time comes!

Best wishes......have a continued happy holiday season!
0 votes Thank Flag Link Tue Dec 25, 2012
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