Home Buying in 08816>Question Details

Tara, Home Buyer in Holmdel, NJ

How should we bid on a property?

Asked by Tara, Holmdel, NJ Sun Jun 29, 2008

My husband and I are considering a bid on a house in E. Brunswick. The house is in a good section and neighborhood. The problem is that the kitchen and bathrooms need some renovating to bring them up to date. I also thing the house will require some painting too.

As per our realtor, the owners will probably take below the asking because they know that the kitchen needs some major updating (and also a new door) and they do not want to put money into doing that since they want to sell the home. Other than that it is a nice house.

How much below should we bid? We don't want to offend the owner with a bid that is too low but we also want to be fair to ourselves with the cost of renovating (cabinetry, flooring, fixed patio door, vanities, etc).

Thanks you!
Tara

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Answers

8
Bids (offers) should never be considered offensive or insulting to the sellers. NOT getting offers is insulting. At least you are expressing an interest in their property and opening up the doors of conversation.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Jun 30, 2008
Hi Tara, Your agent will be a great help here - the best offer is one you can justify. You should not worry about insulting the seller if your agent can explain to the seller why you feel your offer is a fair one. Have your agent gather the best comps possible, making adjustments for the variances in condition/updates and calculate an offer price range. If your offer is within a range that you can justify, then you can make a compelling case. What is insulting to sellers is when an offer price is pulled out of a hat.

I agree with Weanona - after all the number crunching is done, take a step back and apply the "reasonableness test"...does it make sense?

If it does, go with it. At a minimum, you should be able to engage the seller and begin a dialogue that will hopefully result in an agreement that you both can live with.

Good luck to you!

Best,
Jeannie Feenick
Weichert Realtors
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun Jun 29, 2008
Tara,

I agree with my colleagues in the business who have already replied.

- get comps from your Agent
- price out what the renovations would be
- have your agent check with the listng agent to see if the price of home " already " accomodates what work needs to be done and/or your agent being experience with the market may already know the answer.

Lastly, once you have considered ALL the above suggestions.....take off your buyer shoes put on the sellers. If you were the seller would you except the offer you are about to bid? This is a great rule of thumb to help eliminate gving an insulting offer ...if you would not accept your " own " offer if you were the seller yourself most likely they current owner will not either. .

I hope this helps

Weanona
weanona@weanona.com
0 votes Thank Flag Link Sun Jun 29, 2008
Tara,

Your agent should be providing you with detailed information on the houses that sold in the immediate area. Keep in mind that when listing the house, the listing agent should (note..I said should) have shown comps to the sellers who would determine a fair price with the older kitchen and baths. Therefore, the listing price may already represent the rooms that need renovating. That is not always the case but it is your agent's job to provide you with comp'd data that you need to make an educated and fair offer. Also, keep in mind that if you proceed with this house and you have an inspection, it is not sensible to try to re-negotiate the price based on the inspector's report of the patio door being broke, the flooring, etc. - your offer should take all this into consideration and leave the inspection for unseen problems.

Good luck.

Gina Chirico, Sales Associate/Realtor
Prudential New Jersey Properties
973-715-1158 cell
973-239-7700 ext 132
GinaChirico@PruNewJersey.com
0 votes Thank Flag Link Sun Jun 29, 2008
Your Realtor should be providing you with comparables so that you can make an informed decision. Think of what it would cost to make the repairs, deduct that amount from the current price. Also be sure to make the offer contingent on inspections and appraisal so that you can renegotiate the offer if the repairs are too high. Good luck to you.
0 votes Thank Flag Link Sun Jun 29, 2008
We have a realtor whose office is in that area. She also lives in E. Brunswick so her knowledge of the area is very good.
0 votes Thank Flag Link Sun Jun 29, 2008
Tara,

Congratulations on finding a house. Have your realtor check comps of similar houses in the area to see what they sold for. Try to use comps that are recent, within the past couple of months if possible. Then try to get an estimate of the work you will need done to the house.Use all of this info to come up with an offer.Have your realtor explain how you came to that price when presenting your offer. And stick to your guns. If you don't want to pay more than a certain price because of work that needs to be done, then don't feel pressured to do so by anyone. In this market, buyer's have more power.
0 votes Thank Flag Link Sun Jun 29, 2008
Do you have a Realtor or is the Realtor representing the seller?
0 votes Thank Flag Link Sun Jun 29, 2008
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