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!
Search and connect at http://www.feenick.com
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
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.
Gina Chirico, Sales Associate/Realtor
Prudential New Jersey Properties
973-239-7700 ext 132
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.