Home Buying in Laconia>Question Details

Joyce, Home Buyer in 01879

I've been watching a property since July 07 the price started at 260,000 and now it's at 229,000 The seller

Asked by Joyce, 01879 Wed Oct 24, 2007

drops the price every 2 wks. I also found out the seller just purchase another home. My question is offering 200,000 firm reasonable?
Thanks, J

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No such thing as firm in my opinion. Offer $200,000 if you only think it is worth that or if that is all you can afford, but still be prepared to negotiate. Negotiate things like paying $210,000 and have them pay closing costs or repair costs. Negotiate things like offer a closing for 4 months from now so that when they ask for sooner, you can give in on something other than price. Work with a good Buyer's Agent to negotiate for you with supporting evidence and negotiating skills.
Ruth
2 votes Thank Flag Link Wed Oct 24, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
Joyce - Good question. I agree with Mansur Hasib. But, a bit of clarification on what he was saying about "wiggle room" is in order. It depends on whether the seller is able to sell you the home for that price. If he owes $200,000 on the home, then he would need to put money into escrow to close. He may be unable or unwilling to do so. These are things your agent will be able to help you to decide.

Just because a property is getting reduced ever couple of weeks doesn't necessarily mean it's a great buy. It may have started off way too high to begin with. Have you agent prepare a market analysis for you and help you to structure an offer that works for you and the seller. Be prepared for a counter-offer. This is where real estate agents earn their money. ---negotiating.

Good Luck!
3 votes Thank Flag Link Wed Oct 24, 2007
If you want to buy the house, Show up like a serious buyer with a buyer's agent, respectable earnest money, an approved loan from a real lender and all your homework done, meaning you have a good idea that the seller can take a less than 90% offer. Most sellers will not bring cash to closing. Talk with your buyer's agent about your strategy. If your offer is well prepared and the comps support that low of an offer, a good listing agent would work your deal with your agent.
Web Reference: http://www.ERAHouston.com
2 votes Thank Flag Link Wed Oct 24, 2007
Don't offer anything "firm" Everyone likes to negotiate. If you want to wind up at $200, offer something less!
Web Reference: http://www.dianeglander.com
2 votes Thank Flag Link Wed Oct 24, 2007
Just because a property is getting reduced ever couple of weeks doesn't necessarily mean it's a great buy. It may have started off way too high to begin with. Have you agent prepare a market analysis for you and help you to structure an offer that works for you and the seller. Be prepared for a counter
1 vote Thank Flag Link Wed Oct 24, 2007
It does appear that the seller is motivated to sell. I can tell you that the market has decreased in equity position on average 10% over this time last year. More in some markets. Once you have viewed this property, view others in the same market and price. Decide how this property compares and make an offer accordingly. I do suggest involving a good buyers agent to assist you with a buying strategy. A buyers agent can determine the motivation level of the seller and council you to make an offer that is in your best interest to obtain your real estate goals.
Web Reference: http://www.SuzanneDamon.com
1 vote Thank Flag Link Wed Oct 24, 2007
You'll never know if you don't ask. Price is only the result of what somebody is willing to buy it for. At high level, it sounds like they will become more motivated as time goes on from this point because they will be carrying 2 homes. It depends on their financial strength of course, but point being, go for it and see where it goes.

Best of luck,

Jon
0 votes Thank Flag Link Thu Feb 6, 2014
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0 votes Thank Flag Link Thu Feb 6, 2014
Joyce,
You must really like this home if you are constantly watching it. Are you ready, willing and able to buy?Then get off the couch and go find a realtor right now! Or kick yourself later for not trying. Try to find a realtor who is a CBR(Certified Buyer Representative) and hire them as your buyer agent to help you.
Web Reference: http://www.RentersOwn.com
0 votes Thank Flag Link Wed Nov 14, 2007
I have seen too many "firm" offers that were not "firm".....

I think you hurt yourself by delivering this message as an initial offer. You need to learn more about what works for them. You might find a compromise that works. Delivering "firm" on the initial front doesn't allow those future negotiations and learning to happend w/ ease.

It is sometimes wise to deliver a final firm counteroffer after negotiations have been going on a while.

Good Luck
0 votes Thank Flag Link Tue Oct 30, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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I find trying to guess the circumstances and motivation of Sellers is not often helpful for potential Buyers. Your best course of action is to focus on your own situation and ask yourself the following questions:
1, Do you want this property?
2. Do you think it is fairly priced for the current market?
3. Can you afford the property? and if not at waht price range are you comfortable?
4. Have you spoken to a Mortgage Broker to get yourself pre-qualified to buy a home? It is always best to get pre-qualified before shopping so you know how much you can afford. In many cases it only costs the price of a credit check. Be careful about letting to many folks check your credit as it can have a consequence on your credit score.
5. If it is a FSBO have you received a copy of a property disclosure? Make sure you know what issues you mayhave to address once you won the home. A home inspection and septic inspection is always a good course of action.
6. The best thing you can do for yourself is to secure representation. Find a Real Estate Agent you have confidence in and have them complete a CMA on the property prior to making your offer. A REALTOR can help guide you through the real estate buying process. Many times to Seller will pay the Agency commission so why not secure advice?
0 votes Thank Flag Link Tue Oct 30, 2007
It is if the home is worth 200,000. What have comparable homes sold for? Maybe if you wait long enough the seller will have priced it below 200,000. Either than or someone else will have bought it. I guess it all depends on how much you want the house, Joyce, and how much you are willing to pay. If 200,000 is it, go for it, you may get it. I wouldn't use words like "firm" or "final", however. They don't give you much wiggle room and tend to alienate sellers.
0 votes Thank Flag Link Wed Oct 24, 2007
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