Home Buying in Fairhope>Question Details

Sydnee Rober…, Home Buyer in Fairhope, AL

What should I offer on a home in Fairhope AL. 36532 that is listed at $850k?

Asked by Sydnee Roberts, Fairhope, AL Tue Feb 3, 2009

The home was purchased 11/03 for 360,000. Last year, public records show a loan of $120k taken out for improvements. It is in a desireable location, and the owner has asked us to make an offer. What would you suggest?

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John & Linda Cramer’s answer
Good Evening,
Thank you for taking the time to inquire about your next step with regards to purchasing a home listed at $850k First Linda and I would like to applaud your efforts thus far looking taking the initative into the publicere cords and digging deeper. Information is so key.
My question to you would be are you being represented by a "Buyers' Agent?"
Indeed you should to protect yourself and use all the resources at your disposal, to ensure that you are getting the best and most for your money. Afterall when your looking at property over 3/4 of a million, you want to know that you are making a good decision.
Location is a determining factor when looking at property, and Fairhope is a peferred, desired location. In the current publication of Southern Living Magazine Fairhope was rated as the #2 desired place to live.
In the meantime we took a moment to see what properties are available on the market and there are currently 3 listings at the $850k range in the Fairhope area.
One apparently is on the "Bayside" and all 3 properties have been on the market for quite some time, which is in "YOUR FAVOR"
Once again we would strongly suggest that you meet with us or a Qualified Buyers Agent. We could provide you even more information, as I mentioned, to you such as how many days the property has been on the market? How many price reductions since it's original listing?
Then we would gather the comps showing homes that equal to the desired property, and have recently sold in the last six months.
By providing you all this information, we should be able to determine a offer that would be "Acceptable" or at least t least "Negotiatable"
It's a buyers market and with the seller paying the fees, you'll receive good representatoin on your end, as the seller indeed has someone representating them.
So give us a call, email us, and we would be honored to assist you in purchasing the home you desire.
Thank you for taking the time to read this post/response, and we hope that you get this home you so desire.
Web Reference: http://www.cramerteam.com
0 votes Thank Flag Link Tue Feb 3, 2009
Check the local comps at least 3 but I like to use 5-6 one lower in value one higher and one around the same price if you can't find them hope you have cash because banks will be skeptical about giving a loan. Once you have comps make adjustments to what your property has and don't have be sure to add those to the comps not the property your looking at.

If your positive the house is worth 850k I would start at 20-30% below worst that could happen is they say no best they say yes but if the property is truly worth 850 a 5-10 reduction would be a good deal and should be able to get it.

P.S. 360k purchase and 120K improvements seems far fetched to get 850K

That large of a purchase I would have a buyer’s agent and a good one with strong negotiation skills because if the property is not worth it then you could get stuck.
0 votes Thank Flag Link Tue Feb 3, 2009
Your buyers agent should be person working on your behalf. Unless comp's are reviewed, compared to condition of home, other research difficult state what should be offered fair all parties.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 3, 2009
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