Home Buying in Trimont>Question Details

Dreamhome, Home Buyer in Eden Valley, MN

Want to buy house listed for $299000. Been on market for 2 years. Appl. and cabinet doors need updating. Otherwise looks good. What should we offer?

Asked by Dreamhome, Eden Valley, MN Tue Mar 29, 2011

Home located in small farming community. No current home sales to compare. Other for sale homes sitting also. 3800 sq. ft., 11 acres, geothermal heat, 4 bdr, 2.5 ba. Flooring in good shape just outdated colors. Average home price for area $50-60,000.

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Yea I guess I gotta agree with most of the other agents. My advice is free but my services are not. It is just that plain and simple. Also, how the heck should I know what to offer I have not even seen the property nor do I know why on earth it has been on the market for 2 years?

Anywho, what I CAN tell you is what I do with my clients and you can decide for yourself what you would like to do.
1) do a market anaylisis- There are many ways you can do this and YES there are always ways to compare this home to others.

However, something random you might want to think about "is acreage pulling in a higher price right now compared to similar homes? In my area condition has greater value than acreage, but that type of stuff you should be able to figure out.

2) Once you know fair market value what price are you comfortable coming in at? My biggest leverage is trying to understand the sellers motivation. So things like "why has this been on the market for 2 years" might be something you wanna check into! That could def. be a red flag, or maybe it just means you came across the right opportunity.

3) depending on the situation you start off negotiations at 80% of fair market value that you determine. Remember, my job is to negotiate contracts to get my buyers the best deal. If you are doing this on your own for whatever reason I would think you would still want to get a good deal? Unless I think my buyer is at serious risk of losing the property that is usually where I start.

However it still comes down to what you are comfortable with.

4) The last guy is terms of contract. No idea if you are going to have a lawyer draft one up or what

0 votes Thank Flag Link Wed Mar 30, 2011
Hi Dreamhome
They are all correct. You would not go to court without a lawyer, you wouldn't go through an audit without an accountant, and you should not buy real estate without a Realtor on your team. Are all realtors the same? Of course not. Interview at least three, ask them how many deals they have done in the last year or two, and especially ask them about deals like this. Ask them about their negotiating skills. Ask them how they keep you in the loop.

There are only three variables in most deals: Location, Condition, and Price. A professional Realtor will always find a way to do comparables.

Even more important may be a Trend Analysis (by a Realtor). My average client lives in their new house 6.5 to 7 years. The kids grow up, things change. You want to be assured that when the time comes to sell, whether its five years or twenty years, there will be an upside for you. Our Trend Analysis Tool will show this to you.

It is a pretty part of the country you live in. Good luck with the house.

0 votes Thank Flag Link Tue Mar 29, 2011
Hey, Dreamhome! I have to agree with all of the agents here. Just curious, why have you not consulted a local agent? We see many questions posted here that are similar to yours, and I think we all wonder what is holding people back from consulting with the very professional who can give you one-on-one attention and address your needs more specifically than any of us can on this forum.

There are some agents who are less than effective, but MOST of us love what we do and are eager to do what we can to help you. We do get paid from the proceeds of the transaction, but most buyers do not pay an agent directly, so it's no money out of your pocket. We do this to make a living, just like everyone else does on their job, so I won't apologize for wanting to get paid for the work we do. BUT, most of us are also doing this because we LOVE people and we have a genuine desire to help people get what they want.

Good luck!!!
0 votes Thank Flag Link Tue Mar 29, 2011
You are about to make the largest purchase in your entire life (most likely). You want to have a Realtor representing you as a buyer's agent. No one on here can tell you what to offer on a property. Hire a professional. You'll be glad you did. Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Tue Mar 29, 2011
A realtor in your area will be able to help you determine an appropriate price range for you to make an offer. If there are any homes that have sold recently they may still be able to use other previous solds. Even if they couldn't find something similar nearby they could use some comparables in other areas or use other nearby properties to determine a price per sq foot and then apply that to the home you're interested in. A good agent will find a way to help you.

If you need help finding one in your area, you can contact me through my Zillow profile or website and I will help you out.

Patrick Howard
Edina Realty
0 votes Thank Flag Link Tue Mar 29, 2011
like Aaron says, talk with your agent. (if you don't have one, consider finding one who is also an appraiser) ask them to do a good CMA and make your offer based on that. Or pay for an appraisal which would carry more weight with the seller.
good luck
0 votes Thank Flag Link Tue Mar 29, 2011
No one on here will be able to give you a good answer on that. Everyone on here will tell you that you need a real estate agent familiar with the area or an independent appraiser to help you establish value.
Web Reference: http://www.whybuyreo.com
0 votes Thank Flag Link Tue Mar 29, 2011
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