Chichi, Home Buyer in Bronx County, NY

there is a lot of work to do in property we want to buy and the property is listed for 400k, what will be the right offer for us to give

Asked by Chichi, Bronx County, NY Sun Sep 19, 2010

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Chichi, you bring up a common issue in real estate.

In order to get a fixer sold, we have to list it at a price lower than a comparable house that's all fixed up. So that's one discount. Having placed it on the market as a scratch-and-dent and at a significant discount, prospective buyers come by and want to discount it again.

Go figure.
1 vote Thank Flag Link Fri Nov 12, 2010
This IS indeed a Buyer's Market. But it's difficult deciding what is a good offer to make when you find a house you like.

Before you make offers, you have to know your maximum financing amount/purchase price.

First things first: when making an offer, focus on what your monthly payment will be for the mortgage financing, including taxes and insurance. If that payment is within your means, then your Mortgage Banker will determine the maximum loan/purchase price for you based on all the factors of the monthly payment, your down payment and your mortgage qualifications.


Begin making an offer with the following standards:

1. WISH LIST. Does the home meet MOST of the requirements from your Dream-Home-Wish-List? The Dream Home exists only in our minds; it's NOT out there waiting for you to stumble across it one Saturday afternoon. But you can find the right home using your Wish List. When you find the home that meets most of your requirements from the wish list, then it's time to make an offer.

2. FORGET LIST PRICE. Based on your own research, shopping in your chosen area, select the price you're most comfortable with, regardless of list price/asking price. In other words, you'll find a home listed at $268,000, but you've seen at least a dozen other similarly constructed homes in the immediate area priced or sold at $235,000. What makes this home so special that it's priced $33,000 more than the average price? Remember, your Lender will appraise the home based on similar homes and those prices.

3. MAXIMUM OFFER. Never exceed the price based on your mortgage qualifications, no matter how much you LOVE the home. You have to be able to afford the payment for the next thirty years. That in-ground swimming pool you love isn't going to pay the mortgage for you!

4. OFFERS ARE NOT PERSONAL. An offering price can NEVER be misconstrued as an insult to the homeowner. This is business; you're not going to hurt anyone's feelings! Make the offer based on a price you're most comfortable with!


5. OPENING OFFER. NEVER open with your maximum offering price. Test the waters with your opening bid: you want to see if this Seller is a SERIOUS Seller who understands this is a BUYER'S MARKET. If there's no reaction to your offer---assuming the price you offered is within the reasonable range of current market prices---you may be wasting your time with this home/Seller. It might be time to move on to another home.

See my "Five Steps To Making An Offer" for the best way to negotiate on your home purchase.
http://www.tcurranmortgage.com/2010/04/09/five-steps-to-maki…

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Wed Sep 12, 2012
If the property is listed by a realtor, most likely they have already investigated comparable homes in the area, and that is how the price has been arrived at. Take into consideration the estimated cost to fix the property, You may need to ask a contractor. An appraiser can also help you by telling you the value before and after the necessary repairs are completed. You may also benefit from taking out a 203(k) mortgage, which will build the costs for repairs into the mortgage itself, making it easier to afford to complete the jobs upfront. If you really want the property, the offer you need to make is one that will be accepted while still allowing you enough funds to complete the work you need to do to make the house livable.
0 votes Thank Flag Link Mon Apr 4, 2011
Now the Majority of the answers were suggested you work with a Realtor, & I will tell you the
same thing. You will only stand to gain all the information you will need to make an educated decision on
if you interest in this particular house. A Realtor is going to ask you the tough questions like, "If you have 400K why not buy a house that it in better condition for same price? If you are interested in speaking with me
I can be reach below
0 votes Thank Flag Link Mon Nov 15, 2010
Do you have an agent, if so ask for comps--recently sold similar properties in the immediate area, review the data and make a determination to a fair offer; consider--is the property already priced to reflect the repairs needed; also is it priced on target or slightly below today's market--if so, keep in mind multiple offers may occur.
0 votes Thank Flag Link Sun Nov 14, 2010
Hello Chichi,

You need to ask your Realtor to give you a comparable market analysis for the property you are interested in purchasing, This way you are able to have an idea of what is the best offer you can make in order to get it accepted.

Good Luck!
0 votes Thank Flag Link Sun Nov 14, 2010
you may ask a real estate appraiser for an opinion on the property
a. as-is
b. as-if repaired
c. est'd coosts of upgrades

a hud-fha loans require a lower down payment
however, you must leave on the property- condition is
owner-occupied
aaaplies up-to four fams iif i am correct
good luck
fell free to ask appraisaal/ valuation questions any time
Alex-appraiser
Web Reference: http://www.aaarea.net
0 votes Thank Flag Link Fri Nov 12, 2010
Hi Chichi. Make sure you get a contractor to look at the property and provide you with an estimate for repairs. Are you financing the property? Depending on the type of loan and condition of the property, it may not qualify for FHA or conventional financing. A 203k loan can provide you with additional financing for your repairs.

~Robrt Greenblatt
Keller Williams, Cherry Hill NJ
0 votes Thank Flag Link Mon Sep 20, 2010
Hi Chichi,

If you are working with a buyer's agent and have a signed agreement with them then Realtors cannot give you an answer on this board. Your agent should know the comps and provide you with that answer. If you don't then we can. What kind of property is it? A single family or a multi-family?

Robin Lynch
Keller Williams Realty Group
914-315-6182
0 votes Thank Flag Link Mon Sep 20, 2010
Dear Chichi,

Work with your Realtor ... he/she can perform extensive market/statistical analysis to help you determine what the best value for the home......then you can decide if the amount of repairs is viable.

Best Regards,

Maureen
0 votes Thank Flag Link Sun Sep 19, 2010
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