Home Buying in Sugar Land>Question Details

Mik Tran, Both Buyer and Seller in 33611

Offer to make?

Asked by Mik Tran, 33611 Sat Apr 12, 2008

when i'd like to make an offer on an average condition of a house in Sugarland asking 250K,how low I could make an offer,should I go with county's appraisal for fair offer or comp from my agent(I mean cash offer).Appreciate your experience opinion.

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6
How low....? It depends on how much you like the house and whether there are competitions. Tax record has little to do with actual market value. Comparables of recent sold & pending sales for similiar homes in the same neighborhood is a good reference guide when making an offer.
0 votes Thank Flag Link Wed Apr 16, 2008
Start with the comps. Forget the county's appraisal; it means nothing.

Then determine how much you can afford to pay. If you haven't, check with a mortgage broker. Not just to see what you can qualify for, but how much you can comfortably afford.

Then you have the third number: $250,000, the list price.

The lowest of those three numbers--the comps, what you can comfortably afford, and the list price--is your maximum price. Don't pay a penny above that.

Then we get into the questions of seller motivation. (How long has the house been on the market? Does the owner have to sell?) And we get into your motivation as a buyer. How much do you really want the house? The higher the seller motivation and the lower your motivation, the lower your offer below that maximum price. On the other hand, the lower the seller motivation and the higher your motivation, the closer your offer might be to the maximum price.

Now, I don't know what's happening with real estate values where you are. Real estate conditions are local. However, you may find that, after the calculations I presented above, your maximum price might be, say, $225,000. That's a 5% drop from the asking price. But remember: In this hypothetical example, $225,000 is the most you can or will pay. Not a penny more. So your offer must be no more than $225,000, and it probably should be a bit less. How much less? That's up to you. Ask your real estate agent for some guidance.

Again, work through the calculations. Determine the maximum to pay. Then come in at or under that figure.

Hope that helps.
0 votes Thank Flag Link Sat Apr 12, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Many buyers forget that the other fees the seller needs to pay therefore that is the gross amount the seller prior to pay realtors fees 6%, closing cost, tax pro rated, insurance and etc. Tax appraisals have nothing to do with the appraised value for a home.

It does not matter if you pay via cash or lender, the seller stills nets the same, however with cash you can close earlier.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Apr 12, 2008
Your best best of making an educated decision is to get your real estate agent to give you the comps for the neighbor going by the home your are interested in. That means she/he shold do the CMA (Comparative Market Analysis) making adjustments in price for homes that are in better shape, have more updates, etc. Then look at them and judge how you wish to make your offer. An experienced agent should be able to guide you into making the best offer possible. Your agent should view the CMA, and take into consideration how long the property has been on the market, whether he/she knows how badly the sellers wish to sell, etc. and help guide you into a price that you are happy with. Good luck!
0 votes Thank Flag Link Sat Apr 12, 2008
Don't use the tax appraisal for anything. Could be right on or could be way over or under market value. In some neighborhoods if you bid tax appraisal you'll never get the house as it is just so far under market value it doesn't make sense. In other places it is so far over, you might overpay by $20-$40,000 in that price range. You realtor can advise you of an appropriate offer. Each situation is different depending on the information we know and the both the circumstances of the buyer and seller. If you are making a cash offer, be sure to include proof of your funds. You can always set up a savings account attached to your main bank account and just move the appropriate funds into that account. That way you don't have to show them ALL the money you have, just the amount you need to cover the offer.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sat Apr 12, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Mik,
The county's appraisal is just a tax assessment. The comps from your agent are of market value. I would go depending on the rest of the situation (days on market, and whatever else your agent could tell you about the situation) with an offer of 2 to 3 percent below the asking price.
0 votes Thank Flag Link Sat Apr 12, 2008
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