Home Buying in Milford>Question Details

Fleen, Home Buyer in New York, NY

I'm getting close to seriously shop for a small CHEAP house near Milford. It's my first home purchase. I feel that the best strategy for me is to

Asked by Fleen, New York, NY Sun Oct 14, 2012

offer what I can afford, even if it's WAY under the asking price. I realize it isn't usually a good idea to make an offer that could insult the seller, but some of these houses have been on the market forever, so I figure I could get lucky. Any thoughts?

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I love working with first time home buyers and I love Milford! If you need assistance I can be reached @ my Keller Williams Milford, PA office at 570-296-6400 or by cell/Text: 845-313-6332.
Looking forward to talking to you~
Elena Quinn
0 votes Thank Flag Link Sat Mar 23, 2013
I think it's a good strategy, although I see that most people don't agree with me on this one, BUT they are all brokers, who want easy life and try to convince the buyer that it's for his best interest not to offer way below the asking price. To my knowledge, it's a seller's market, but good luck explaining it to brokers. I don't think you should worry about insluting the sellers, it's business, if people don't understand it, too bad for them. And, I also don't think the brokers have the right to decide what is an insulting offer, aren't they supposed to present any offer they get? Isn't it how it's supposed to be? I believe you can get lucky, maybe you're better off dealing with the listing agent himself. Good luck!
0 votes Thank Flag Link Sat Feb 2, 2013
As a follow up, I should say that this will be a cash purchase. The houses I'm looking at are well under 100K. By low-balling I'm talking about offering 50K for a 65K listing.
0 votes Thank Flag Link Mon Oct 15, 2012
How much is “WAY under the asking price”? Are you paying cash or are you planning to finance your purchase? It’s hard to evaluate your strategy without having specific information about the homes you like, their prices, and your maximum offer. It’s not so much insulting the seller, although that IS a factor. Your local area agent will develop a Comparative Market Analysis (CMA) for you prior to your offer, showing you the likely market value of a home, regardless of its list price. Though dramatically low offers can succeed, if your best offer is more than 10% below the CMA value, your chances of success are extremely slim. Keep in mind that you will need money for closing expenses too. You might qualify for 100% financing (yes, that’s still an option out here in rural areas of the country, such as Milford, Pa), which might give you some additional buying power.

You have gotten some excellent advice from other agents here on Trulia. Your best bet is to work with a knowledgeable local area agent. Interview agents and find one that can assist you in maximizing your offer through lender financing or other means (owner financing, lease purchase?) Discuss your financial objectives and the homes you like from online “shopping”. You may find an agent that is willing to work with you. By the way, I am a local agent in the Milford area. Feel free to contact me.
0 votes Thank Flag Link Mon Oct 15, 2012
Fleen,
Let's get serious. I mean really serious.
I can not think of any context where truth resides when the opening line is "I'm SERIOUS" and the closing line is "I could get lucky."

You are NOT serious.
And, no, you won't get lucky.

You can however, purchase your first home with the proper strategy. Lucky NOT A STRATEGY.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
727.420.4041
http://RealEstateMadeEZ.us

First Look: http://youtu.be/PumYpkgybXE
0 votes Thank Flag Link Mon Oct 15, 2012
I'd like to congratulate Fleen on his impression on you that you are agressive, but unfortunately many real estate people are so, I'm not saying professionals, because I don't think there are many in this business who are professionals, and that's based on my experience with you. Really, it's not any profession that requires any study or degree for that matter, if nothing else you should have some knowledge in psychology, to understand the basic that you don't keep, or get new customers by being rude to them. If you guys are so professionals, who come so many people lost so much money in real estate? Oh, wait, they probably didn't buy from you, right?
Flag Sat Feb 2, 2013
Your reply is unnecessarily aggressive. While the area where I'm looking is certainly not Palm Harbor, FL., it's close enough to NYC for a weekend getaway. I have been been doing a lot of online research. My payment will be in cash. When a 65K house has been on the market for a year, it's not unreasonable to think the owner might be eager to unload it, especially at the beginning of the winter season when homes can undergo unforeseen wear and tear or damage from snow, frozen pipes or fallen trees. While I'm not a genius real estate professional, I really don't think my approach is as clueless and worthy of ridicule as you seem eager to present it. And just a tip... if one of your "strategies" for giving your input here is to showcase your knowledge about the real estate market, you might want to avoid insulting a potential buyer with snarky, condescending, useless comments.
Flag Mon Oct 15, 2012
Every area is different and we are starting to regain some ground in Milford PA. If it is Milford PA you are interested in, I would be happy to sit down with you and go over the market trends and the list to sold ratio to give you a better understanding of the area. I would seek out a real estate professional. Yes there are still deals out there and sellers are willing to listen to offers within reason. Good luck with your search! Arlene
0 votes Thank Flag Link Mon Oct 15, 2012
Staying within your budget or affordablity should play an important factor in your buying decision.

Have you been doing your research online? The price of the houses is market driven. It is the meeting of the minds between the buyers and the sellers.

Unless you have a better understanding of the recent sales, just because the house has been on the market for a long time does not mean that it is not priced correctly.

The absorption rate for a specific market will tell you more on what the is the average days on the market before a property sells.

Why don't you work with a realtor who can assist and guide you in the process?

Home buying is not just a matter of shopping and low bidding. It is intricate and if you don't have experience on this arena, the service of a professional is invaluable.
0 votes Thank Flag Link Mon Oct 15, 2012
Sure, you could get lucky with that strategy. But in this part of the housing market cycle, you might as well try to win a lottery. So, how did you come to the conclusion that low-balling is the best strategy for you? Are you looking to offer all cash deals in distressed neighborhoods?
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon Oct 15, 2012
Oh, yes, all cash. And the sort of house I'm looking for is in what I believe to be a slow moving area, and a borderline fixer-upper. I don't get a thrill out of low-balling, but I only feel comfortable paying a certain amount, especially since I know there will be renovation costs. I figure I'll offer what I can afford and if the seller says no, then no harm done. When I say low-ball, I'm talking about offering 50K for a 65K house. This is all new for me.
Flag Mon Oct 15, 2012
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