Home Buying in Arlington>Question Details

Sukra gauran, Home Buyer in Malden, MA

What should I offer for the house that is priced for 285K?

Asked by Sukra gauran, Malden, MA Sat Jan 5, 2008

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BEST ANSWER
Depends on: (1) What it's worth, (2) What you can afford, and (3) How much you do or don't like it.

First point: A house priced at $285,000 could be worth anything. Ask your agent for a CMA (competitive market analysis) of the property, along with his/her analysis of the house's value. (Unstated in your question, but a common thread, is: "If a house is priced at a certain figure, is there a certain percent below that that I should offer?" No, there is not.)

Second point: How much can you afford? If you can only afford $250,000, then that's the most you can offer, regardless of its value. (Well, there are some exceptions, but practically speaking don't offer more than you can afford.)

Third point: Does the house fit you and your lifestyle. It might be a great house for, say, an elderly couple that wants everything on one floor, only needs 2 bedrooms (one for themselves, one for visitors), and so on. But it might not work at all for a family with 4 children.

Hope that helps.
2 votes Thank Flag Link Sat Jan 5, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
The answer depends if you actually want to buy the house or not.

If you don't care if you get the house or not, then throw in a low-ball offer and see if you get any reaction. By doing so, however, you risk that some sellers may get insulted and may not consider any of your other offers as being serious (until you get very close to the asking price). Also, a low offer may cause the seller to consider a higher offer that is either on the table, was submitted previously or may come soon.

If you really want the house, have your Realtor prepare an analysis to help you determine if the property is at current market, above current market or quite possibly below current market (assuming that you have a Buyer Agent representing you. If you are dealing with the listing agent directly, remember it is that agent's job to take all of our money and give it to the seller, so pay attention to 'Agent Representation' if you have one). Depending on the results of that analysis, in addition to market trends and inventory levels, you will be better informed to make a decision as to what you should offer.

Note: This is a general answer to your question based upon a hypothetical situation and is not in any way intended to interfere in another Realtor's transaction.
Web Reference: http://www.REALTYMAN.com
2 votes Thank Flag Link Sat Jan 5, 2008
May I answer from a sellers prespective? and also a buyer of a new house?
If you want the house you should offer pretty close to what they are asking in this market, they have probably already dropped it a lot.(we have and will only accept close the the money or hold on to it) as far as offerring on our new house in another state, it was clear that this house too had come down a lot and was worth every penny, we did offer 10,000 less, but split the difference, and we feel the only reason that happenned is that seller had a death in her family and she wanted out, she was elderly and couldn't take care of the property. I am seeing a lot of questions regarding offerring lots less then what it is worth and I blame the media for this. House are not meant to be given away.
Good luck, if you want the house and the house is for you ,just be fair.
2 votes Thank Flag Link Sat Jan 5, 2008
Sukra:

The last agent is correct and it truly depends. I would recommend determing the price per square foot, the appraised value analysis, and also check zillow and home gain. Once you determine the proper price point then you can determine what to offer. Best
0 votes Thank Flag Link Tue Jan 18, 2011
What are similar homes going for ? You should base it on the market value and not on listed price . There may be two sellers with identical homes. One may list it for $285k and the other for $350k. If you decide that no matter which house you buy, you are going to make an offer that is say , $50k less than asking price , if you make an offer on the less expensive house where the seller listed at below market price to get a quick sale, you may find that there was not much room for negotiation and someone else may buy it while you wait for a reply to your offer. A good agent will do the comps for you and will help you decide.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sat Jan 15, 2011
Offer $45,000.

Make em work hard to get you to $50,000.

I am seeing 30% fixed rates in the future as the USA is now a third world economy existing upon hyper inflating the currency.

Zimbabwe here we come.
0 votes Thank Flag Link Tue Jun 2, 2009
I would use this site for the answer. Search for Arlington's $/ sq ft (average) and calculate the baseline. From there, adjust for market conditions and property type and location. Look me up if you need a mortgage.
0 votes Thank Flag Link Tue Jun 2, 2009
Depends on what comparable houses ae selling for in that neighborhood. 90-95% of the listing price is arbitrary. What if houses in that neighborhood have been selling for 75% of listing price and you offer 95%, then you really screwed yourself. Do some homework yourself or hire a Good Realtor to do it for you. I always say "You wouldn't hire your mechanic to do heart surgery would you?"
Have a great day

Leander McClain
Keller Williams Realty
1814 Route 70
Cherry Hill, NJ 08003
856-685-1677
0 votes Thank Flag Link Tue Jun 2, 2009
For god sakes don't trust a real estate agent to tell you what to offer. Think about it, they get more commission when you offer/pay more. Go 95-90% of listing. This is a buyers market. Don't get screwed.
0 votes Thank Flag Link Tue Jun 2, 2009
Home prices are based on supply and demand. There are very few properties in Arlington for $285,000 and Arlington is a very high demand town. An experienced buyer broker/agent who knows the local area will have the information you need to get the house you want for the best terms - an offer is more than price. If the house is listed with a real estate agent, they will pay a buyer agent, so there is no reason for you to go it alone - why not have someone working on your behalf? The seller has representation. You have nothing to lose and everything to gain. If you would like help let me know - good luck, Marilyn
0 votes Thank Flag Link Wed Jul 2, 2008
Do your research. I usually go to the town's online site and look up property assessments and previous sales price. I also consider how look its been pn the market too. Are you in a rush to find a place or have time to continue looking.

Unfortuneately in this market and sellers who bought in 2004-5-6, they are getting offers below their buying price, selling below their buying prices and its tough for them.

I'm sick of looking but know my home is out there.
0 votes Thank Flag Link Wed Mar 12, 2008
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