The answer to this question is somewhat complicated because there are so many factors to consider. In a short sale there may be more than one mortgage involved and the two lenders will not come to a meeting of the minds. Bank foreclosures, especially when they are new on the market will often not consider much of a lower offer. On HUD homes there is a little calculation I have followed with successful results. I agree with the realtor who suggested $150K range. If you would like some actual figures on homes in the Albany area, I would be happy to provided them for you. Give me a call at 541 971-1165 and we can talk about it a little more. Meredith Lankford, Keller Williams Realty Mid Willamette
"Market" is not the list price, though it may be. "Market" starts with what truly comparable homes in the neighborhood (no more than one mile radius, in the same city, have actually sold for in the last 3-6 months.
But there is no magic percentage for offers. A buyer's Realtor is ethically bound to present any offer that's not "frivolous". A seller's Realtor is ethically bound to present ALL offers to the seller. While I will write the offer, I frown on buyers making an offer that's lower than what they believe the home is worth to them "just to see if we can steal the place". Don't write offers on homes you don't really want to buy, just to see if you can buy something below market.
One advantage of having the buyer's Realtor presenting the offer to the seller's Realtor is that it takes the emotion out of it. No one needs to get "offended" over a business transaction. Either seller and buyer can come to an agreement or they can't. No one need should be offended or embarrassed about the process, regardless of the outcome.
Remember the advantage of the cash buyer is that the seller knows the escrow will not be derailed by the buyer's lack of approval for a mortgage or the home's appraisal. That's worth a lot to some sellers, and not much to others.
Finally, unless you have LOTS of time and LOTS of patience, don't shop for short sales. My personal experience includes a six month wait to get an answer, and that's not a record. Read my blog post at http://bit.ly/rqUfvq
(your thumbs up would be appreciated!)
There is no rule. Pricing is not a controlled element. Some people overprice and agents hope they will come down to what the market indicates. Others under price for a quick sale or to create a bidding war.
If I were your agent, I'd look at homes up to $150,000, but remind you to not get emotionally attached to the homes well over your range. When you find homes that you like, I'd research them, their time on the market, the status of bank owned or short sale and we could discuss a strategy to try.
I wrote a blog piece about pricing a house that might be helpful for you. Iâ€™ve attached a link for you below.
One question, with $150,000 cash and rates at and below 4% have you considered financing? I don't know the Albany market, but it would appear you have multiple options with that much cash.
I would be happy to help you with this process and help you find informed answers.