http://www.trulia.com/voices/Market_Conditions/Would_an_offer_at_sq_foot_for_a_nice_home_in_Mat-91143My wife and I found a home in Matthews that we are interested in. The home has been on the market for greater than 6 months and the asking price is set at approx $155/sq foot. Without trying to make any sort of political statement, I do not believe the current (or the near future) market warrants that price. It is a nice home that was built at the end of the 90's on 2 acres of land with about 4000 square feet. The owners built another home thus presumably would like to sell the old one asap although I do not necessarily think they are in financial distress. I am of the opinion that given the uncertainty and the overall market that $100/ sq foot is very reasonable but would really appreciate anyone else's view.en-ushttp://www.trulia.com/voices/profile/Real_Estate_Pro-Fairfax_VA-115570/http://www.trulia.com/voices/profile/Real_Estate_Pro-Fairfax_VA-115570/Nc Bound: Your question addresses one of my "hot buttons"--whether an offer will be considered "insulting." And, to your credit, you really clarified what you meant in your comment below. Still: Never worry about whether the seller might perceive an offer as "insulting." One seller might be delighted to accept an offer 25% below the listing price. Another might be "insulted" at an offer just a dollar below the listing price. You never know. More important, you shouldn't care. As you note, you're not in a popularity contest. Further, is the seller concerned about insulting you? Of course not. If your scenario is correct, he's priced his home way above market. What's he take you for: A fool? Now, that's an insult. Is he concerned? Of course not. Further, let the seller be insulted by all the people who took a look at his property and decided to not even make an offer. You at least would have the courtesy to make an offer. Point is: If you don't make an offer, you won't know whether or not it'll be accepted. You can sit there all day wondering. And many people sit there in terror out of fear of "insulting" someone they don't know by making an offer on a property. Work with a good Realtor to determine the actual fair market value of the property. Then, on that basis, if you wish, make an offer. You're not a mindreader. You have no idea whether your offer will be considered "insulting." What you do want to do is make an offer that works for you. Hope that helps.Mon, 29 Jun 2009 05:30:55 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Charlotte_NC-795066/http://www.trulia.com/voices/profile/Real_Estate_Pro-Charlotte_NC-795066/The insult factor is valid to a degree. For the most part, if you are working with a Realtor, they have already done a market analysis for you, and have probably shared the average square footage price in that neighborhood. The location of Matthews is much too large to suggest a square footage price for all of Matthews. Each neighborhood has its own pricing factors...school set up, amenities, lot sizes, and location...not to mention the particular location within the neighborhood...lot size, what it backs up to, slope of the lot, use of the lot, trees vs no trees....etc. Not to mention the home itself, which would include condition, floorplan, upgrades...etc. SOOOO... Say you offer full price and to close in one year. Is that a good offer? Probably not if the seller needs to move in the next two months. Now you offer a lower price, but close in two weeks...will that work? Maybe-if the seller needs to close ASAP. Fair market value is in the eyes of the buyer, the seller, and if needed, the bank. The terms and conditions of an offer, often end up being the difference in getting the deal done. How about this, low price, close in two weeks, cash deal, no repairs required by seller. That all depends if the seller can jump hoops and get out of the house in two weeks. Sometimes, they can't. All of these issues are negotiated within the offer to purchase. You should offer what is a little lower than what is perceived as "fair market value" and then negotoiate it out to the satisfaction of you and the seller. Homes for sale are unique in the fact that "home is where the heart is" and there in lies the ability to upset/offend/insult a home seller. They bought it, they love it, they live there...if you want it, but only if you can steal it, are you really a serious buyer for the sellers "home". Get it? If you are just looking to get a 'good deal' focus on bank properties and foreclosures where there are no emotions involved. Then it is simply a business transaction. If you really like the home you mentioned, and you want to make it your own home, be reasonable and proceed with an offer.Mon, 29 Jun 2009 05:19:21 -0700http://www.trulia.com/voices/profile/Real_Estate_Pro-Houston_TX-744630/http://www.trulia.com/voices/profile/Real_Estate_Pro-Houston_TX-744630/my two cents... as offered in a prior response, don't worry about insulting the seller. make an offer which you feel reflects a fair price for the home. i'm a realtor and active appraiser, and i assure you that ultimately the "price per foot" will not be a consideration. if the sales amount satisfies the seller's needs and realistic wants, they will take it. if not, you tried and go find another. also, as an appraiser it is frustrating to hear folks use the price per foot in referencing real estate values. if an average price per foot of an area is say, $100, that does not mean that a similar home with 200 fewer feet with sell for $20,000 less. using a price per foot is an unrealistic short cut approach. i know i'm pushing a big ball with a little stick, and that people will continue using price per foot as a guide, but note that this approach absolutely makes sweeping generalizations, and completely misses the critical subset specific activity that truly determines value. happy to get that off my chest, and good luck with the house. i hope you get it.Sun, 03 May 2009 11:00:01 -0700http://www.trulia.com/voices/profile/Home_Buyer-Cornelius_NC-172579/http://www.trulia.com/voices/profile/Home_Buyer-Cornelius_NC-172579/thanks for your response and you are right about the fact I should not care as I am not trying to win a popularity contest...a better phrased question is if folks familiar with Matthews, NC transactions are aware of current market rates on "executive homes"...we recently looked at a very nice home that is going for $95/sq foot as the owner seems to have financial issues, but it was too big and just not what we want... in the case of the house we are interested in that I described initially, the gentleman paid a good deal more for the house back in 2001 than what I am prepared to offer today...we are very interested in the house but I believe his asking price is way too high so I believe my options are to wait as I do not believe anyone else will pay close to his list price or to make the offer...perhaps it is better for him to find out for himself that he is way off base...or perhaps he gets lucky... we are in no hurry...as Gene rightly said and indicates, it never hurts to ask and at least he will know who to contact when the time comes for him to sell...in the meantime, if it sells there are loads more out there...Sat, 21 Feb 2009 08:05:05 -0800