How to make an offer on a house?
We have found a house that we are in love with. Problem is it is listed at $385,000-way out of our league. The house has been on the market for a while and needs some cosmetic work. Comps for the surroundin area are $120,000-$200,000. w/one exception of one home that sold across town for $310,00. It had more land and a basement and pool. However, this houses owners built as they could and took 30 years to complete-so they owe nothing for it and the owners husband passed away six months after final completion. Daughter wants rid of the property-mother wants top dollar (what the realtor listed it for-we happen to use the same realtor). So, we are not sure what to do? Any suggestions??
I don't know who this goat has been dealing with (if anyone) but you need to have a buyers agent submit your offer. Ask them to submit your comps which show how you arrived at your price. This is all you can do. If a seller thinks their home is worth more than it is it'll sit there. Bottom line is what will it appraise for? You can't get a loan for more than the appraisal.
"Buyers agent. Have someone involved that has ONLY your interests in mind."
Buyer's agents represent the seller in all cases. The more you pay for the home the more the buyer and seller agents will make.
Get a real estate attorney instead to provide you with contractual advice.
Offer what you want to pay. Comps are useless in an imploding realty market. Make an offer you are happy to pay. Walk away to the next opportunity when rejected. Repeat until you find a motivated seller. Stay away from realtors as they will refuse to submit your offer in most cases.
Hello Jennifer,
While you are in love with the house, you must remain level-headed in your decision making. Think about how the real value will be determined- with an appraisal. Let's say you buy the house and in a few years you decide to refinance. An appraisal is going to use local comps (generally within two-three miles of the residence), so you need to make sure that your offer is in line with what an appraisal would value it at, not the sentimental value of the seller. If it's a proverbial "white elephant" you're going to have issues in the future, so take that into account before buying.
Your line of thinking and the suggestion below are correct: make a respectable offer using the LOCAL comps you have, don't reach too far to justify the price. If the seller won't budge you'll need to move on. There are many unreasonable sellers in this market and you may end up finding one. Good luck and keep us updated!
Kind regards,
Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com
Buyers agent. Have someone involved that has ONLY your interests in mind. Protect yourself in this way, then use the comps you mentioned to make a respectful - if short of their asking price - offer for their consideration.
Do you already know of an agent in the area that you can trust?
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