Home Buying in 30076>Question Details

Mary, Home Buyer in 30076

I am looking at putting an offer on a townhouse with an asking price of $500K what would be a reasonable offer to make?

Asked by Mary, 30076 Sat Mar 17, 2012

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15
Very good answers already relating to comps.

One addition piece of advice. The comps will tell you the approximate value of the property. You want to pay no more than that. You might well want to offer less. A Realtor can help you with that strategy.

Beyond that--one intangible that hasn't really been addressed--is seller motivation. Again, you need to know how much the house is worth based on comps. But then: How motivated is the seller? Low motivation is a seller whose attitude is, "Sure, I'd like to sell if I can get my price. But I don't need to sell and I'm not going to give the house away." High motivation is a seller who really wants to sell--maybe because they've put an offer in on another home contingent on the sale of their current house. Or maybe they've moved and the house is sitting there empty. So, after you know the maximum amount to pay, you can factor in seller motivation to help guide you on how low your offer might be.

Hope that helps.
1 vote Thank Flag Link Sun Mar 18, 2012
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Yes, how did your bid go?

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Sat May 5, 2012
Contrary to all that: "Comparable solds" are in the rear view mirror. If you find yourself someday in a rising market, the old prices won't be available anymore, and you might have to compete against another buyer that is willing to go higher than last years price.

Don Teppers answer was very good. So much depends on the sellers motivation..

In a balanced market, or a sellers market, the buyers motivation could be even more important.
At $500K I would think that you are shopping as an owner occ. so your envisioned quality of life is an important factor as well as just how good a deal you get, compared to the deals made by competing buyers in your town.

Question: Would you be happier saving a theoretical $10,000 in todays purchase money on a place that suits your needs, but is missing many of your "would like to haves"
-Or happier paying a couple thousand dollars more for the place that is right where you want it to be, and has all the bells and whistles that you personally want, and does not come with some baggage that you'd rather avoid - like some aging appliances or some crummy views.
0 votes Thank Flag Link Mon Apr 9, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
You received alot of helpful answers, So how did your offer go?......
Web Reference: http://www.LaquitaBaez.com
0 votes Thank Flag Link Mon Apr 9, 2012
Before making an offer, your agent should review the comps of recent sales of similar homes in the immediate area.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
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0 votes Thank Flag Link Sun Mar 18, 2012
A reasonable offer to make would be based on a detailed review of the most recent comparable sales nearby, and additionally based on knowledge available about current pending sales.

For you that might mean $450000...that might mean $525000...
0 votes Thank Flag Link Sun Mar 18, 2012
Ditto to everything already said..... there's absolutely no way to answer that question in good faith with any sense of correctness without knowing the exact property and doing the market research to answer your question. So for now, the best offer to make would be $0.00 until you hire an agent to provide you with that valuable information.
0 votes Thank Flag Link Sun Mar 18, 2012
Where's the townhome? Anywhere in Roswell 450+ puts you at the top of the market. Founders Mill is one community that I know of...because I've done a few bank foreclosure appraisals in there over the last few months.

If you don't have an agent that's counseling you on working at this level in this area then you're walking off a financial cliff. You're going to be in the top value tier, you better have a complete understanding of this submarket, the trends, the shadow inventory, the current inventory and most of all - you better understand what you expect to get of this purchase and why you're considering it. If it's appreciation, you better think that over.

If you don't have an agent and need help - which may mean hearing what you don't want to hear - drop me a line.

Hank
http://www.hounddogrealestate.com
0 votes Thank Flag Link Sun Mar 18, 2012
With all the advice given to you by the other responders, I sincerly hope that if you don't have your own representation, that you will seriously consider finding a "Buyers Agent" to represent you. $500,000 is a lot of money to invest wihtout someone to advocate for you in the purchase of this home. You don't pay for a buyers agent,,,the seller does. So the question is...why wouldn't you have your own agent????

Good luck
0 votes Thank Flag Link Sat Mar 17, 2012
The only way to answer that is to know what very similar properties have sold for, typically within the last 3 to 6 months. Your Realtor should be able to provide the information and analysis to guide your decision.
0 votes Thank Flag Link Sat Mar 17, 2012
Hi Mary. Agree with most of other comments, but, if it is new construction there are other considerations.
0 votes Thank Flag Link Sat Mar 17, 2012
I have to concur with the ladies, and add that the list price will have no bearing on what the right sales price should be. That should and will be determined by the demand (how many other buyers are interested in the property) and how many other properties similar to it are currently available.

The path of negotiation to take, in getting to a mutually satisfactory agreement between you and the seller, is purely based on a strategy that you and your buyer's agent (preferably me) : ) agree upon, in order to put you in the best possible strategic position to achieve your goals. If you would like to see comparable sales and discuss the right strategy for you, I would be happy to help. My contact info available on my website.

John
0 votes Thank Flag Link Sat Mar 17, 2012
Linda and Shervon are correct. Only an agent can provide you with the correct answer to this question. I hope you have one!

Best of luck!

Julie
0 votes Thank Flag Link Sat Mar 17, 2012
That is a question your real estate agent should help you answer. They should give you information on recent sales in complex and area comparables. If you are unrepresented give me a call and let's discuss your options
0 votes Thank Flag Link Sat Mar 17, 2012
Your offer should be based on comparable sales in the area and what you and your realtor think is fair considering the condition and demand of the property. You have come to this website to seek answers a realtor can provide. I am a realtor. Let me help you. You don't have to go it alone.
0 votes Thank Flag Link Sat Mar 17, 2012
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