The first is not using a Realtor. Other than paying an appraiser (probably $300-$500) for an appraisal, a Realtor is about the only way to really determine the value. Either way is fine. In your case--I'm just guessing--a lot of the value is in the land. It's a small house on a lot of land, so you need to know not just what other 900 square foot homes with a barn sell for, but what the value of 17 acres is.
The second bad decision is that you would like to make a counter offer. You're already assuming: (1) $125,000 is a reasonable price (it may or may not be), and (2) the property isn't worth $125,000. Hey, what if it's worth $175,000? It could be an absolute steal at $125,000. In that case, why risk losing the deal; you should consider paying the asking price. On the other hand, what if 17 acres and a small home are only worth $80,000? You might counter at $115,000, get your offer accepted, and end up overpaying by $35,000.
Either get a Realtor or pay for an appraisal.
Hope that helps.
Great question!!! In your best interest, the answer is going to be the same with the following questions:
How do I prepare a contract with the proper contingencies that protect my interests in this transaction?
Who's responsible for the title work, the survey, the inspection, the appraisal, etc.?
Who will help me understand the closing settlement statement and the paperwork involved?
Hire a local Professional Real Estate Agent to represent you for the transaction. In most cases, the seller will pay a Real Estate Agent a commission to get their home sold.
You might call the Casey County PVA office and see what the property is asessed at ? You can always give me a call again and I can work for you as a buyers agent which does involve you paying a fee. Just an idea...I am sorry what we looked at did not pan out for you. Please let me know if you decide on anything else on our website.
I am a realtor here in Somerset, KY which is close to Liberty. I would be glad to represent you as a buyers agent. I can do a CMA on the property and help you through the rest of the purchasing process. I have represented other clients buying For Sale By Owner homes. Otherwise my only suggestion is to have the property appraised. I have seen alot of buyers pay too much for property when they were FSBO'S, so make sure you do your homework.
Key Associates Waterfront Realty
Thanks for your question! You may want to see if Liberty has an internet accessible PVA (property valuation administration). This may help you determine many things, including what this property was originally purchased for and what it's tax value is as of today. Go to http://www.google.com and search "liberty kentucky pva." If it's not online, you would have to go to their office to search the records.
If I may, is the property listed with a Realtor? If so, you may want to consider using the services of a Realtor such as myself. It is free for you to use me as a buyer's agent and I would be more than happy to help you with the contract or direct you to someone in the Liberty area that could.
Thanks again and Merry Christmas!
Rector Hayden Realtors, Lexington KY
Of course you could also hire an appraisal but at $300+ thats a bit of a financial commitment considering you don't know if and to what extent the seller will negotiate.