Home Buying in Oakland>Question Details

Fred Azar, Home Buyer in 90210

I am looking to buy a new home, but prices seem an bit higher than what I can afford vs what I want.

Asked by Fred Azar, 90210 Sat Mar 21, 2009

How much can I ask the home seller to lower the price in a house that costs 600K in Oakland without turning him/her off?

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10
Fred,

Sounds like you need to speak to an agent.

Your agent should have all comps in the area for you upon interest. I would have all active, attorney review, closed and expired comps before discussing price. We have minimal information here from your post.. but if the houses were selling for 750k previously.. or an average number and 600 seems like a steal.. get comps.

Value is value. I want a 6000 sq ft house with taxes around 3k.. but........
" prices seem a bit higher than what I can afford vs what I want"

A successful homebuyer does their homework - their Due Diligence. You should be prepared by doing Due Diligence and thorough research to make an educated offer.

Good Luck.

John Sacktig
Broker / Manager
Orangeke Key Realty
1 vote Thank Flag Link Mon Mar 30, 2009
"525k offer, he counters at 575K, you hit 550K final and best, close at 550K" . . . the property appraises for 475K, and you'll end up over-paying for the property unless you lower that price at least by 75K.

That's why it's important to get the comps, and order an appraisal before closing.

Peter's right: hire an agent to help you with your offer.
1 vote Thank Flag Link Mon Mar 23, 2009
Allow me to clarify thngs. My point is that trying to assess how best to approach the transaction puts the cart before the horse. The real issue is financial.

Before doing anything regarding a home purchase, you should figure out what is comfortable financially and stick to that budget. It is therefore logical to ask why a real estate agent would show a buyer client properties that were either unaffordable or financially uncomfortable. Homes normally do not discount drastically unless they are over priced. The buyer here is asking how much of a discount he can reasonably expect for homes that are not within his affordability range; this is unfair to the buyer in my view just for openers. This is basically my point.

As for foreclosures and short sales: Sometimes the real estate agent has nothing to do with negotiating the short sale because the buyer's attorney does it all. Each situation is unique. Foreclosures in a mls system typically close quickly. With short sales, it can vary widely depending on a bank's efficiency or lack thereof and also if there are additional liens on the house. Most short sale denials come from the 2nd/3rd etc positions and this can take a very long time. There really is no fixed standard for how soon or late you'll hear from the bank on a short sale.
0 votes Thank Flag Link Sat May 16, 2009
With regard to the previous answer: I may have missed something and if so I truly apologize however I didn't see where anyone recommended looking at homes out of this buyers price range and I certainly didn't see a responce where it was recommended that they be put in a "house poor" situation?

With regard to short sales , Yes in some cases it can take as long as 4-6 months to get a response from the bank however I also have numerous situations where I've received an answer within 24-48 hours and closed within 30 days . Recently I have been finding a record number of Bank Owned properties and Short Sales going under contract within days of being listed and closing within 30 days from that point.

Again a Realtor who is experienced in Short Sales, Bank Owned Properties and Foreclosures is your best bet. Someone who knows what to look for,what each town has to offer, what local property values "really are" , and how to negotiate with the bank and can get the deal closed is invaluable and your best asset.

In general most Realtors are not going to recommend that you look at and certainly not purchase more home than you can afford. Our reputation IS our business looking out for YOUR best interest is our most important objective . Best of Luck in your search for a home and a Realtor.
0 votes Thank Flag Link Sat May 16, 2009
I must respectfully part company with other answers because I do not believe that you should be shown homes that put you above your budget. Whether or not you can qualify or afford a certain price range is almost irrelevant - what you want to spend on housing every month is precisely where it's at as Step 1.

It is not my policy to sell a home to anyone at the very top of their affordability range because this is so very irresponsible from a financial point of view. Right now, as a matter of fact, I have 2 people waiting as prices are coming down still although at minimal levels now. If I took both of these buyers to buy homes in December/January when they came to me, they'd be really stretching to get the house. However, waiting 6 months has resulted in a world of difference - both can now get into locations they wanted at a price they can afford. The point is this - stay within your affordable budget.

So it's not a question of how much you can negotiate but why are you being advised to look at homes that put you into a "house poor" situation? I really think you need to step back for a moment and analyze the big picture. Oakland is a great area but if you need to spend more than is comfortable, it's an unacceptable location for you.

As for short sales, it depends on the loan amount and whether you can wait 4-6 months for an answer from the bank. You need to do a bit of homework on this. Actually, you need to do homework on any house you buy and the other folks are correct in that you need to understand the home's background so that you can fully assess it's value. In Bergen County, if a home discounts tremendously it's just been over priced. Correctly priced homes sell relatively close to asking no matter the market. What you need to determine is whether the asking price is correct for the market.
0 votes Thank Flag Link Sat May 16, 2009
It all depends of the home, length on the market and some specific details of the entire situation. I specialize in short sales etc . and there are quite a few homes in this area that are great values. The home owner needs to get out from under a mortgage that is now more than market value and the bank does not want to foreclose. I can help you negotiate a deal that would help you purchase a home that is much more in your price range.
Give me a call
Dianna 201-739-1132
0 votes Thank Flag Link Thu May 14, 2009
Fred - you are getting good advice here - work with a good buyers agent and get the proper Sold comps. It doesn't matter WHAT they are asking. You need to know what it's worth.
0 votes Thank Flag Link Fri Mar 27, 2009
Fred,

I am wth DP and Peter on this one. The info currently disemiinated on the internt today leads one to believe that there is some percenatage that one should offer below asking price, The truth of the matter is that current market comparbles, to which banks will relay on ioaning monies (including short sales) is the most appropariate settlement price.

Having said that, in ttoday's market there are seller's pricing appropriately, but also an eqivalent amout of sellers continuing to hold out for their price that best suits their "personal needs" (and these are the sellers that continue to "chase the market."), thereby making it almost impossible to answer your question directlly. I and my associates are not afraid to present an offer as in the words of noted RE trainer, Daniell Kennedy, no offer is an insult and any offffer is a sign of interest. In my viewmproviding that the property is priced
rightt" any ofer is a sign of interest is not an insult, but rahter a sifn of interestl

In an attempt to to answer your question directly, I must ask: "How much can I ask the home seller to lower the price in a house that costs 600K in Oakland without turning him/her off " I must ask (1) are you currrently represnted by an agent as I would expect that the/she has proivied you with market comparables to eanable you to make and educated decision as t cururent market value ( 2) what, if any feedback as to the market comparables has this agent proided, be it on marlet or off maket sales

Yada yada, I can go o and on. Call if yoiu'd like to dscuss, it's that much easier.

Francesca, Realtor, eOPro
832.606.2931
Web Reference: http://www.PatrizioRE,com
0 votes Thank Flag Link Fri Mar 27, 2009
525k offer, he counters at 575K, you hit 550K final and best, close at 550K.
0 votes Thank Flag Link Mon Mar 23, 2009
Well it depends on a lot of factors. How long has it been on the market? Has the owner lowered the price already? If so how many times? How does it stack up to comparable houses? Is it a short sale? Is it a foreclosure?
See what I mean without that info its hard to advise. Roughly speaking 10% or less might be a good start but you need a gooed realtor to get the info you need and advise you accordingly.
Regards
0 votes Thank Flag Link Sat Mar 21, 2009
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