Home Buying in 33029>Question Details

Alfa, Home Buyer in 33029

I'm going to do an offer for a house I liked but how agressive an I go?

Asked by Alfa, 33029 Thu Jul 16, 2009

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Hi Alfa,

I agree 100% with what Grace wrote below. How much do you want the property?

I just helped a client purchase a foreclosure in Hollywood. There were multiple offers on the property. The bank came back and asked everyone for their "highest and best" offer. We upped my client's original offer by $5k, to full price, and his bid was accepted. We will never know for how much less he possibly could have gotten the house. But my client still got a great deal, and is now started on adding the kitchen that didn't come with the house! He is not worried about the $30 per month in mortgage payment he would have saved if he got the house at his original offer price...

I know everyone thinks they should be able to steal properties right now, but you need to consider how good (or bad) the asking price is to begin with. If it's good, you will not be the only person to realize that.

Please let me know if I can assist you further. Good luck!

Diane Loveridge
Majestic Properties
(786) 210-3449
dloveridge@mindspring.com
1 vote Thank Flag Link Thu Jul 16, 2009
Alfa:

it all depends on how much you want the home in question. If you're simply "fishing" for a bargain deal, then get aggressive. Keep in mind, however, that most of the time, you will NOT get the home. Occasionally and very very rarely, you'll find a bank that needs to simply dump the home and I hope you find that elusive home, however, in most cases, banks as well as private owners have to make a certain amount of money on the home in order to close their books or move to a new property.

The best way to determine the reasonable price "range" for the home is to work with your Real Estate professional in obtaining comparables for the property. You'll also need to get the property profile to see the indebtedness on the home. Remember, everyone wants a bargain, but if you really want the house, you'll need to be prepared to pay a fair market value for the home--not the bargain price.

If this is a short sale, for example, and everyone offers a very low amount to purchase the home, it may be in the bank's best interest to foreclose the property, spend a little money to renovate it, and then resell it on the open market. Many of the banks are doing that right now, which is why so many foreclosures are 'trickling", rather than flooding, the current real estate market. The bank does NOT have to accept a short sale, and if the BPO (a price evaluation completed by a real estate professional) shows that the home is worth more, then the bank will wait to get the higher offer.

Similarly, an REO property does not have to be sold at a bargain price as far as the bank is concerned. They may wait for a better offer. Only after quite some time, if the better offer does not come around, will the bank consider the "bargain basement" price.

Finally, keep in mind that in most areas around the country, we're still looking at a fairly robust home sales period. Buyers have been enticed by the $8K government stimulus, and will be out looking until at least November 2009. If you wish to be truly aggressive in te purchase price of a home, you may need to wait until buyers have left the market in order to exercise your buying power--and for now, that would appear to be after November 2009.

Good luck and work with your Realtor to appropriately price your offer.

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
1 vote Thank Flag Link Thu Jul 16, 2009
0 votes Thank Flag Link Fri Jul 27, 2012
Look at the comparable in the area, recent sales, the condition of the property, it is also a little bit of art (beauty is in the eye of the beholder)
0 votes Thank Flag Link Sun Apr 29, 2012
In this market, in Southwest Broward, homes are selling for 97% of listing price.
That means that for the most part, only homes where sellers are asking market value are selling.
SImply ask your agent to give you a CMA estimating market value, then bid slightly under.
Also bear in mingd that your lender will perform an appraisal, which shuld prevent you form paying over market value.
0 votes Thank Flag Link Wed May 25, 2011
I think your work with a realtor, he should do to you with a CMA, comparable market analysis, the seller must know how much is the price of your home on the market.
If you like the property passes an offer price close to the CMA
0 votes Thank Flag Link Wed Dec 22, 2010
Depends on what the seller's reasons are for selling and how motived they are to sell. Also depends on if you're the only buyer or are there multiple buyers. Are you working with an agent? Is the seller working with an agent? Lots of variables come into play...once you know the game, then the offer becomes easy. Best of luck!
0 votes Thank Flag Link Mon Aug 3, 2009
If you decide to put an offer on a house, the first thing you have to do is contact a Realtor that will see what the comparable prices are in the area. Some properties listed in the MLS are not "real" market value, but merely something the seller is wishing for. For any Realtor listing something like this without doing your homework, you are doing the market a great disservice. As a buyer agent, I've ran into several already.

Doing your homeowrk on values in this market is essential for not wasting your time and running around in circles, taking unnecesarry steps, and making ridiculous offers.

The only one that can help you do this is a Realtor with this saavy.

Once you know market value, see how much mortgage is left over, because the seller may very well get caught in a Short Sale situation.

Placing the offer is easy. Just do it! Make your offer and see what happens. Some agents will say there is an offer on the table, and they begin taking back up offers to see which one to take, so make sure that if you are going to make an offer, you have been pre qualified, and have at least a hefty deposit to submit to escrow to show your best intent.

God Luck and if you need assistance, just come to my website and begin finding the BEST possible house for you or loved ones!

http://www.realtyralph.com
Web Reference: http://www.realtyralph.com
0 votes Thank Flag Link Mon Jul 27, 2009
Hi Alfa,
The main thng you need to know is if the house is a short sale or not. If so, then you can only offer what the bank may take. WIthout that information it is difficult to answer how you should offer.
You should have representation for advice, and the comps in the area. All offers are different and have different circumastances. By all means it is best to start lowr, but on great properties recently there are multile offers, so sometimes you need to make your best offer first, Again, I would need to know the circumstances.

If you need representation fel free to contact me directly,

Beth Jenkins
South Florida Brokers
786-374-4778
Web Reference: http://www.arealyteam.com
0 votes Thank Flag Link Thu Jul 16, 2009
Don't worry about offending the seller with a low ball offer. He/She may have not had ANY offers on the house and would gladly be willing to work with you.

Why leave money on the table with a high first offer. Play off their motivation. You can always counter with a higher offer later. After you make your first offer you will get an idea as to how motivated the seller really is.

Darin
Web Reference: http://www.hhiinvesting.com
0 votes Thank Flag Link Thu Jul 16, 2009
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