Home Buying in Cranston>Question Details

Melissa, Home Buyer in

What percentage below the asking price should I be offering?

Asked by Melissa, Fri Jul 4, 2008

The asking price is $228000 and the home needs a new roof which they offered to credit $5000. I've done some research and the most expensive home that was sold in that area in the last 4 months ( same style and # of bedrooms) was $200000.

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It sounds like you are doing all of the right things, reviewing the sold homes in the neighborhood is critical in determining value. It is also good that you have recent comparables. I would also review the terms of sale for example, were the other properties foreclosures or short sales as that will impact the selling price. Lastly, check the sales price as it compares to the properties assessed value and apply that to your subject property. If you are not working with a realtor, you may want to consider it. The offer is just the beginning of many issues to be worked out in the transaction and you may find it beneficial to have someone looking out for your best interest. As a buyers agent in the Providence County area I can help just send an email. Best of luck to you!
0 votes Thank Flag Link Mon Nov 24, 2008
You say the most expensive home sold for $200000, but how comparable was it to this home? Adjustments should be made for size, lot, rooms and amenities. Then deduct for the roof which I would guess would be more than $5000. unless they are just overlaying. There is no set percentage below asking, just a fair price for the property.
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0 votes Thank Flag Link Fri Jul 4, 2008
I would suggest that you ask your realtor to do a comparison of the homes that have sold in your area in the last three to four months. The realtor will have to do adjustments on the comparables based on the location, size, condition, and general market conditions. If the last home was truly comparable, and I had looked at the location, size, condition, amenities, and general market conditions, then I would say that $200,000 becomes a ceiling benchmark. I would suggest hiring a roofer to give you an estimate on the roof cost and put that in my pricing adjustments. Most re-roofings cost more than $5000 so I would be careful here. I would suggest that final offer would be around $192,000 all things being equal when the comparables are adjusted. You would need to start a bit lower than that to get to the $192,000.
0 votes Thank Flag Link Fri Jul 4, 2008
if you work positively in concert with your real estate agent I am assured you will have solutions to all of your questions resolved. Good luck http://www.lynn911.com
0 votes Thank Flag Link Fri Jul 4, 2008
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