Home Buying in 95135>Question Details

Tp, Home Buyer in San Jose, CA

How to approach an offer on?

Asked by Tp, San Jose, CA Sun Mar 2, 2008

A house is listed for few hundreds short of $1400,000 in zip 95135, and some research shown other houses similar in sizes, lot, no. of rooms, and floor plan within a 1/4 mile were solded in the last 6 months for $1000,000 to $1200,000. I got a chance to see the house inside and out, and did not see any upgrades that would justify the difference. I know houses in this area has been appreciated steeply in recent years, but I do not believe it is going up since the real estate "bubble" sometimes in 2007. I want to make an offer around $1100,000, but do not want to offend the seller. Does my offer seem un reasonable?

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charles butterfield’s answer
Based on the information that you have presented, the property is overpriced at $1,400,000 and an offer of $1,100,000 would be a very reasonable offer. In fact it would be a very good offer offer for the seller.

If you want the property, I recommend that you make the offer.
0 votes Thank Flag Link Tue Jun 28, 2011
It would depend on many factors, time on market, price owner paid, competing properties, as well as comparables. If you keep in mind this criteria you should have a good idea what would be reasonable or not. Personally with your description of the property, comps, and competing properties we would feel it is definitely reasonable to write an offer in that range. Boyenga Team
Web Reference: http://www.boyenga.com
0 votes Thank Flag Link Sun Mar 2, 2008
Unfortunately many homes are overpriced with the philosophy that the seller thinks that someone will always bid under. As you can see, that strategy isn't the best. It many times keeps buyers away feeling that a) it is not affordable for them b) The seller is not going to be realistic or c) Don't think that they would consider less.

In many cases these days, the sellers may owe much more than what the property is worth. So they initially put the property on the market for what is owed. Or.....they feel that they want to walk away with something so they over price in hopes they will find a buyer who will not hire a professional who will do the research and homework it takes to truly know the value of a home. I have had many potential sellers go to websites to get prices for their homes and insist thats what is worth. But when doing the reasearch they were 100k off. A Realtor may decide to still take this listing in hopes of having the seller get realistic over time or purely to get some marketing value out of it. Its sad........but true.

My suggestion to you would be, if you are truly interested in any home. Get your own Realtor (not the listing agent, somone who is purely on your side) and have them obtain all the information to come up with a price that is fair. They can present this information to the seller when submitting the offer so the seller knows why they have come in a that price.

Hope this helps! Good Luck to you!
1 vote Thank Flag Link Tue Mar 11, 2008
Don't mind what the seller would gonna say to you. It's your shot. Contact a Realtor who could help you realize your dream comes through.
0 votes Thank Flag Link Sat Oct 3, 2009
If the Seller is serious about selling the home, I don't see why they wouldn't consider your offer for 1.1m Furthermore, unless you (or another Buyer) is putting down a substantial amount of money, the home may not appraise for more than the most recent comps and the seller may have to lower the price anyways.
0 votes Thank Flag Link Thu Mar 13, 2008
You need an agent to assist you with negotiations. The agent will know where you need to price your offer and help you. She/He will be paid by sellers.
0 votes Thank Flag Link Tue Mar 11, 2008
Let me know if I could help.
I work and live near this area.
presenting the facts along with the offer is key in this market.
0 votes Thank Flag Link Fri Mar 7, 2008
How long has this home been on the market? If it is longer than 30 days, do not be afraid of offending the seller, because your offer may be the only one they have received. They may also, on the other hand, need to get $1,400,000 in order to get out from under their mortgage. Have your agent inquire as to the psychology of the seller - it will help you in your negotiating offering. All the Best. Let me know if you need a referral to a great negotiator in the San Jose area. Windermere has some experts.
0 votes Thank Flag Link Sun Mar 2, 2008
That would seem to be a reasonable offer, based on the facts presented. It might even be high. If you've seen comps at $1000,000-$1200,000 (can't figure out your punctuation), and recognizing that in most areas real estate values are dropping, the house might be worth no more than $900,000-$1000,000.

But...big "but" here...DO NOT WORRY ABOUT OFFENDING THE SELLER!! It's your purchase. It's your decision. Some sellers will be offended if you offer a penny less than the asking price. Others will be grateful at an offer 30% below asking price.

Figure out what the house is truly worth today, in today's market (use a Realtor for the comps). Then determine what you can comfortable afford to pay. Your offer should be no greater than the smaller of those two numbers. In fact, it probably should be somewhat under. After all, real estate values may continue to decline. And you want to leave some cushion in your budget as well.

Good luck.

Was the seller worried about offending you when he/she priced the house as he/she did?
0 votes Thank Flag Link Sun Mar 2, 2008
Don Tepper, Real Estate Pro in Burke, VA
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