Home Buying in 49024>Question Details

Oranges13, Renter in 49024

Making an offer on Estate Sale?

Asked by Oranges13, 49024 Mon May 23, 2011

I'm considering making an offer on a home that's listed as an estate sale. It's been on the market for over 200 days and has only had one price reduction ($5000 dollars about a month ago). According to my realtor, it actually sold in April but came back on the market after 15 days. I think it was a financing issue rather than an inspection issue, as the home has had some recent updates like roof, carpet, paint, and furnace. However, the lot is expansive and the landscaping is in serious disrepair. The AC is old and the appliances in the kitchen are original to the home.
I'm thinking of offering 10-15% below ask for my initial offer. Is this a good plan, or will I just make the seller angry? As an estate sale, I'd figure they'd just want it sold ASAP.

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sound reasonable to me ...
0 votes Thank Flag Link Mon May 23, 2011
Nothing about the value of the property, if the home is priced right, that is less than a similar home without the issues you mentioned, why do you think it is worth 15% less than that? Also nothing about how you intend to pay for the home. Lenders will not make a loan if the appraised value is less than the purchase price unless the buyer makes up the difference. So there is a safety net, could be what happened to the other offer.

As for estate sellers, often less co-operative than other sellers. If the home is free and clear there is less pressure to sell and there could be some emotions also pulling on the seller.
0 votes Thank Flag Link Sun May 29, 2011
I would think that offer would be reasonable.
0 votes Thank Flag Link Sun May 29, 2011
One option for repairs and upgrades is the FHA 203k loan program. The Streamline 203k can help finance the appliances, the air conditioning and other improvements (it only covers limited landscaping). While I can't speak specifically on the lower offer, I can say the 203k can help make these renovations and home improvements so you can bypass the seller. Rolling these costs into the mortgage is better than simply using credit, because the costs stay with the house if/when you decide to sell it. You can learn more about the 203k in our blog, or talk to a mortgage consultant with an understanding of the local market and "like comparable" home prices. You may find the 203k is a better option over offering a lower price and scaring off a seller. Good luck!
0 votes Thank Flag Link Mon May 23, 2011
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