Itâ€™s really simple:
(1) Find a good realtor to assist you.
(2) Make sure you have a good Realtor to assist you.
(3) Locate a good Realtor â€¦
Once you have your representation:
(1) Have them run the comps on any house you are interested in buying.
(2) Write a good, clean offer close to or at market value.
(3) If you have a realistic seller on the other side who enters into meaningful and appropriate negotiations AND you really want the house, keep at it until you have a deal.
If your offer is not accepted and you cannot negotiate a deal, go find another home you like.
Rinse, lather, repeat.
As an aside, if the comparable homes in the area are selling for less than half of the listed price of a particular home, then someone is probably out of touch with reality. You more than likely will not have a lot of luck negotiating with them.
Lastly, if you do manage to negotiate a deal, if it is too high, the property wonâ€™t appraise and then you are back at square one.
Then you would have real information on where to set your asking price.
If you were working with an agent, he/she could do a CMA (Comparitive Market Value) and tell you what a reasonable price for the home should be. And, should he/she be a good agent, he/she could probably save you a whole bunch of money and maybe even get you into the home with some updates that you otherwise wouldn't have... AND you wouldn't have to pay the agent's commission! Many buyers don't realize that the seller pays for a buyer's agent's commission, so they try to do it on their own to save a buck and in the end, usually pay more for the home. (I have a friend who did that and now he's talking about selling, and will likely take a loss b/c he overpaid for the home).
If you'd like a free consultation, give me a ring. I'm always happy to help!
Make sure that when you make your offer, you include copies of these specific comps, nothing older than 6 months. Also keep in mind that if the $70K value is from a short sale or foreclosure, and the property you want to buy is owned by someone not in financial difficulties, you may have a hard time convincing them that their home is now worth $70K, down from a recent $150K. In my area, appraisers must take all sales into consideration, whether they're shorts, foreclosures or REOs.
GOOD LUCK on your purchase!
Scott Miller, Realty Associates, Boca Raton, FL