Home Buying in Burke>Question Details

Lwith, Other/Just Looking in 23322

If a house has been on the market for 68 days without a price reduction and it requires a little work how would you proceed with making an offer?

Asked by Lwith, 23322 Fri Jun 11, 2010

really low ball and possibly offend them (b/c that is what 68 days on the market means) or go with a conservative offer that you can afford but don't think that is what the house is really worth in this market?

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Jeanne Feenick (908) 337-0943’s answer
Hi Lwith, a well constructed pricing analysis for the home you are considering will answer your question and guide the bidding and negotiating process. One component of the analysis will be days on the market as this is a very important variable. The analysis, when done well, draws on comparable sales over the last 12 months and using days on the market from these actual sales, calculates a recommended market value range for the property you are evaluating. It is a dynamite tool.

I do think that 68 days is too long a time for a seller to wait to adjust the price - the surest way to evaluate price is by the reception of the market. If activity is low and/or no offers received, price needs to be evaluated. I remind my sellers that the most important period of a listing is the first 60 days - perhaps even the first 45 days, when the excitement for the home is greatest. I move quickly during this period, to capitalize on the opportunity it holds. Blow it during this period, and you've really done yourself a disservice.

So, align yourself with a terrific agent with the analytic skillls to support your evaluation of properties. An offer based on teh facts of the market is far more likely to succeed than one that is not.


Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Mon Jun 21, 2010
It is a good question but more important, what is the home worth to you and what are your reasons for coming in low? Time on market may not be a good indicator. Have your agent do a market analysis to see what the home should be priced at. Submit your offer with the knowledge of how reasonable or out of line it is. Every sellers motives change over the life of their listing, it may be considered.
Things to remember: If it has to be financed there isn’t any point in making an offer higher than it will appraise for just to save feelings. If the appraisal is low you would probably be asking the seller to drop the price to the appraisal amount or to let you out of the contract. Remember too that you can only offer low at the beginning. Once the ball is in motion the price will only go up for the buyer, unless the appraisal is low. Keep in mind that if privately owned they may have good reasons for staying at the current price. County records could give you an idea what the mortgage amounts are on the home. Could be that the sellers are trying to avoid a short sale situation.
Web Reference: http://cowetaareahomes.com
0 votes Thank Flag Link Mon Jun 21, 2010
Lwith, 68 days on the market doesn't necessarily mean that the house is overpriced. You should find an agent you know and trust to pull comparable sales data for you to determine local home values. Make an educated guess as to the cost of repairs/upgrades and use that information to determine a fair price. If you want to make a lowball offer you always run the risk of offending the seller. But you also open the door to a counter-offer and finding a happy medium that works for you both. Best of luck
0 votes Thank Flag Link Tue Jun 15, 2010
Other/Just looking,

If you have been prequalified to purchase a home, you know what your price range will be, make an offer in that range.

The easiest way is to ask your Realtor about the average days on market (DOM) a list of recent sales (COMPS) for that area.. . Then ask your Realtor to give you a print-out of every home that has been on the market longer than the average DOM. You will be amazed to learn that often agents don't tell listing agents whether their listings are overpriced because agents don't want to offend anyone either! But listing agents aren't infallible. Sometimes they make mistakes when estimating market value prices for a seller. Ultimately, however, remember that it is always the seller's responsibility to select the sales price.
If you are not working with an agent, please contact me, I would be happy to work for you in your search for the perfect home at the best sells price.
0 votes Thank Flag Link Mon Jun 14, 2010
Have your agent do a market analysis so you'll have a good idea of what the market will bear in that area. 68 days on the market really isn't all that long, we've been spoiled by past market activity.

If the market analysis comes back and you still feel like you should offer low, you may want to consider searching in a lower price range; something closer to what you want to pay. It probably seems like sellers overprice their homes, but most of them don't.
0 votes Thank Flag Link Fri Jun 11, 2010
Until your agent does a CMA to see what comparables are and have sold for recently you don't know how to proceed. 68 days on market means nothing until you see what others in the area have done.

I suggest finding an agent to work with you before you make any offer on any house.

Good luck with your home purchase!

Stan Reed Realtor
Keller Williams Realty
0 votes Thank Flag Link Fri Jun 11, 2010
Do you care if you do not end up buying the house? Are you willing to go low or walk away?

You approach could depend on your goal.

If your goal is to buy the house period offer high.

If your goal is to get the house at a price you think is right offer that. If the seller accepts or rejects the offer is of no matter. You have a lot more houses to look at.

Offer what you think it is worth. It might even be accepted.
0 votes Thank Flag Link Fri Jun 11, 2010
That is exactly one of the skills you hire an agent for.
68 days means nothing if the average time on market is 100.
But, if you like the home, then you are the buyer they are waiting for.
Find a good agent, and make the offer.
Best Regards,
Jay
Web Reference: http://TalleyHurstHomes.com
0 votes Thank Flag Link Fri Jun 11, 2010
You can not base your offer on day on market or what they are asking for it. you need to assess what the house is worth in todays market and base your offer on that. if you have a buyers agent they can easily complete this for you. If you are buying alone, without representation you will need to do some homework.

Find out what the y paid, what the owed and what their motivation is for selling. You then base your offe ron all of these. If teh house needs work, include pictures and a explanation or estomates to fix the repairs as evidence why you offered what you did.

good luck with your offer.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Jun 11, 2010
What is your agent advising--and have you reviewed recently sold similar properties in the immediate area--if so what does the data suggest as to a fair offer. You can make any offer you wish, and the seller may or may not accept, however and generally, any reasonable offer opens up the negotiating table.
0 votes Thank Flag Link Fri Jun 11, 2010
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