Without knowing which particular property you are referring to, I would suggest that you make it a serious offer by putting it in writing to the seller through your buyer's agent. You don't know what kind of situation the seller is in or how much they are really willing to accept without putting a formal offer in writing. Don't worry about potentially insulting the seller. You should know very quickly after you put in the offer whether or not the seller is willing to entertain it. It is your buyer's agent's job to get you the best price possible for the property. A strong and assertive agent will have no problem representing your offer in the best light. But if you don't ask, you definitely won't get. With a $400,000 price change, it seems as though you are looking at one of the higher priced homes in the area. But you don't mention what percentage from list is this drop. It's possible that the owner thinks this was a huge drop, but if the drop was less than 7%, it may not have been enough of a drop to move it. Right now, there are 56 homes on the market in both Mendham Boro and Township over $1M, so it seems that there are plenty of things to choose from. I would imagine that this is a very unique home and has something "special" about it, or it wouldn't be even a thought in your mind after al this time.
You say that you have your financing in place and nothing to sell. So it sounds like you will be a great buyer for whatever property you decide to move on. I hope this helps you make a decision. You never know what will happen. Maybe they turn you down today, but in 6 months when the house is potentially still sitting, they may be more amenable to your offer.
But then again, he who dares, wins! (sometimes). I'd love to get this house, but there is no way on earth that im going to pay what i consider to be a price thats inappropriate in the current market, even though i wouldn't be looking to move at any time in the short/medium term.
We will see....
In this market any offer is a good offer. With excellent credit and nothing to sell any home owner would be crazy not to at least entertain your offer. As a Real Estate professional it is our responsibilty no matter how ridiculous we may think the offer is to present it to the other side. If you love the house and are willing to negotiate I am sure you know as well as I that purchasing a home in Mendham will always be a good investment.
You don't plan on selling in 2-4 years do you?
Good Luck with your purchase. .
Christine M Altamuro, ABR
Good luck with your potential purchase.
Here is some data for Mendham Twp:
Median home price:
Last 6 months: $975,000
So, based on the data, Mendham Two has not declined to 2003 levels. If I had to guess, I would say that the current median home price of current listings and homes presently under contract will be in the neighborhood of $925,000-$950,000.
Having said that, your offer should be based on what the home is truly worth today as an individual home with its individual features, condition, location, competition, and recent sales from the immediate vicinity. If I were your buyers agent, I would evaluate this home, and this home's owner and his motivation.
Furthermore, there is no such thing as an insulting offer if it is presented properly and professionally in person by an agent who knows the ropes and knows how to present in a dispassionate and convincing, yet compassionate manner. An offer needs to be SOLD, not presented. Very few agents are good at this. The VAST majority FAX the offer and hope for the best.
If you would like me to evaluate this property, this seller, and handle the offering properly and professionally, contact me via my website. This offer is obvioulsy open to other buyers also. Ask your agent the mechanics of how they make their offer. If they fax it and wait, you are losing money and maybe your house.
Member, Worldwide ERC
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Yes, pricing has dropped to about the 2003 level on average but not in all townships. I'd love to buy a beach house in Sea Girt at 2003 prices but I doubt anyone would sell it to me:) Do some research to determine pricing in Mendham. You may may find a 2003 price is to low but a 2005 price is just perfect. I'm finding incredible buying opportunities every where and some negotiations even surprise a seasoned agent like myself. If you do the research and still feel your pricing is correct then go for it. It never hurts to try.
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