BeachBuyer, Home Buyer in Hackensack, NJ

how to low-bid on a fixeruppr that is down already$75k in a year. Across street, a double lot justsold for 20k less and 2 homes just listed for 60k

Asked by BeachBuyer, Hackensack, NJ Sat Jul 2, 2011

House is comparable to other houses in neighborhood with more work to do. house across the street sold for less 2 months ago, similar house specs (slightly smaller) with a double property. 2 other properties just came on market for 60 less and one is in turn key condition, its just a matter of taste. We prefer the unique style of the over priced house, its apparent that the buyer is either not realistic or financially underwater, dont want to insult them. Is it ok to come in 50k under asking price! thanks in advance for your advice

Help the community by answering this question:

Answers

7
BEST ANSWER
Hi Alicia

Sounds like you are doing all the right things to come up with a good evaluation of the property. Most importantly looking at the sold and active comps to present to the sellers explaining to them how you came up with that number. To be more persuasive you can have someone do a BPO (brokers price opinion) This is similar to an appraisal but costs only $50 to get an independent agent to do the comp. Basically the agent(get someone certified by NABPOP (http://www.nabpop.com/) gives you an evaluation based on comps etc. Although it is not an appraisal it can help you defend your pricing. It is also good if you find someone who is not representing you in the transaction so they can remain neutral.

Pt. P Boro sales are down and inventory is rising in 2011 vs 2010 meaning the market is softer. In the past year there were 53 sold and a 100 active listings in the boro so it is def a buyer's market. However, you must come in with a price that is realistic so you are correct doing your homework, and if you have cash you could get more leverage in the price. You can find out if it is a distress sale by looking on the tax records, your agent has that information.

Unfortunately there is no precise formula for pricing and emotions are in the equation which makes it even harder. Have your agent communicate the offer in person so your case is clearly presented. The listing agent might be afraid to defend your price because they are representing the seller and do not want to chance losing the listing if the seller gets angry. If your agent is the listing agent acting as dual agent , you might want to reconsider your relationship.

Good luck and feel free to ask me anything that can help .

Best regards,
Val Gabela
0 votes Thank Flag Link Sun Jul 3, 2011
Alicia,

I would first ask what feedback your realtor has provided.

Then, don't let the $75k down in a year disuade you as seller may have been $75 overpriced.

All you can do is present the facts, together with other statistical data about the state the market that most realtors usually have in their tookbox.

Sincerely,
Francesca Patrizio, Broker Sales Associate, ePro, SRES
Francesca@PatrizioRE.com
732.606.2931
Web Reference: http://www.PatrizioRE.com
1 vote Thank Flag Link Sat Jul 2, 2011
Do as you like but if the property is already at a decent price, anything lower than 10% off the asking would be an insult, maybe to the point they would not take any other offer from you later! Also if you are going to lay down a question with a small history of what is going on, do it with more explanation please! It was rough reading!
0 votes Thank Flag Link Wed Jul 6, 2011
You can present any offer you want. These days, even with comparable statistics, the offers are not always based on comps. Put your comps together with your agent and then decide what you think the property is worth. Don't get too emotionally involved with it at this time and you will do better negotiating.
Good luck!
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Wed Jul 6, 2011
Alicia,

No problem. See if your Realtor will ask for an "in person presentation" . . that is where your agent sits across the table from the seller. Alot of times listing agents resist, but I often tell them I have signed document requiring me to make this presentation.

During this process (usually somewhere in the middle), I usually say to the seller, "ya know RE 101 a may insult a seller, however, I am of the school of thought of noted RE expert/motivator, Danielle Kennedy . . . no offers are an insult, an offer is a sign of interest and place to start." Then they listing just a bit more intently.

Francesca
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Sun Jul 3, 2011
I have a web site that will show you what is for sale and what SOLD. It's straight from the MLS system. go to http://www.RealEstateInOceanCounty.info It will help you make an offer that is right on the mark.
0 votes Thank Flag Link Sat Jul 2, 2011
Thanks Francesca, that makes me feel better. My realtor was actually the first to say it was overpriced just by looking at it,,,, we did further research and were shocked to see the sale prices and listing prices of others right on the same block. We don't want to upset them, I'm hoping, like you said, they will be receptive to the facts. Thanks again for your speedy reply.
0 votes Thank Flag Link Sat Jul 2, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer