Home Buying in Wichita>Question Details

bigdaddyaddi, Home Buyer in Wichita County, KS

what would be a good offer?

Asked by bigdaddyaddi, Wichita County, KS Mon Sep 10, 2012

im looking at a house, the asking price is 170,000, the apprasial is 149,900 and the market value is 158,800 so my ? is, what is a good offer and they have 3grand in specials. my bank told me to stay around 150k

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Janet Stephen’s answer
You need to buy the home at the Apraised price of 149,000. They Can not sell the home for $170,000 because they can only sell at an Appraised Price. They need to come down. Or the deal is
over. Or you could come up but I wouldn';t.
0 votes Thank Flag Link Sat Sep 29, 2012
Good morning bigdaddyaddi,

Those numbers are rather all over the place. Where did you get an appraisal number? And where did you get the market value?

You have to determine the best offer based on your comfort with the monthly payment for the mortgage.

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.

Trevor Curran
NMLS #40140
1 vote Thank Flag Link Tue Sep 18, 2012
Hard to say without touring the prop
0 votes Thank Flag Link Mon Sep 17, 2012
If the 149 is a recent appraisal for the bank then you probably won't be able to get a higher loan amount and would have to come up with the difference if you go higher. I would go to the seller and ask if they can try and make this work. If it is and old appraisal maybe the market has strengthened in favor of the seller. I'm not sure where you got the market value number because the appraisal is supposed to be an evaluation of what the market value is. Sometimes the appraisals are just wrong, you could get a second one. However remember you can always make a conservative offer and explain your concerns and negotiate a price you can both live with, and when you apply for a loan they will reappraise, and hopefully it will meet your needs. Your offer at any rate should be contingent on your approving your finance conditions and receiving an appraisal that will work for you. Good luck and if you would let me know how it works out. Sincerely Randy Menge
0 votes Thank Flag Link Mon Sep 17, 2012
In todays market a lot of offers are 5 thousand less than asking. It would depend on how long on market and also how much they have come down already I present all offers regardless of the amount
0 votes Thank Flag Link Sun Sep 16, 2012
Most accepted offers are within 5-6% of asking price. If you want to push a bit harder go ahead, but remember if other offers come in you may loose out. Under $250,000 some are coming in over asking price, however if you don't wait too long chances are less you'll see a lot of offers. If it's been on the market a long time a more conservative offer would be in order.
0 votes Thank Flag Link Mon Sep 10, 2012
So what would be a realistic offer on that house? And I was just saying 3k bc this year is almost over.
0 votes Thank Flag Link Mon Sep 10, 2012
The bank did the tax apprasial .
0 votes Thank Flag Link Mon Sep 10, 2012
The house has been on for 62 days and has specials a little over 4,000 plus HOAs it looks like a great home But i do think the home will sell for more then 150,000 . I dont know about 170,000 The pool dose add value to the home
0 votes Thank Flag Link Mon Sep 10, 2012
Yes sir I'm sorry that is the tax assessed value in that area , I was looking at a house in the same area they wanted 165k it also had more to offer, no specials and more room.
0 votes Thank Flag Link Mon Sep 10, 2012
Was the market value determined by an appraiser? If it was, that is the price a lender can loan on. That would be a good offer.
0 votes Thank Flag Link Mon Sep 10, 2012
Question who did the appraisal? Could the $149,000 the tax assessed value? Who came up with the market value? The definiton of markert value is: The theorectical highest price a buyer would pay (willingly), and the lowest price a seller would accept.

My answer would depend on how the property compares to other similar homes in the area, how much competition is there on the property and how much you want the property.

Nothing more disappointing than losing a property you really want over a few thousand dollars.
0 votes Thank Flag Link Mon Sep 10, 2012
The mls is 339817 it's been on the market for around 65 days I think
0 votes Thank Flag Link Mon Sep 10, 2012
I would say that if you have a CMA that says 158,800 that would be the best offer ,
0 votes Thank Flag Link Mon Sep 10, 2012
Depends on which house it is. Hard to say without know which house you are talking about.
Web Reference: http://WichitasMLS.com
0 votes Thank Flag Link Mon Sep 10, 2012
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