Thanks for your question. It depends on a lot of factors. . . the condition of the property, how long it has been for sale, the location, the price of similar homes that have sold recently in the same neighborhood and seller's situation. There's no magic formula for determining what would be acceptable to a seller. If the house has been reasonably priced at $339,000 then there is a very good chance that the seller won't accept an offer $60,000 lower.
Prudential Prime Properties,Wolfson/Cutler Real Estate
366 Salem st.,Medford, MA 02155
"You don't want to be taken off the list with a low ball"
what list are you referring to? Is there a way that you can be excluded from making future offers to that property if you are taken off that "list"? Or it is just a proverbial list ?
JC, I want to correct a calculation I did below ... Your 280,000 offer on a 339,000 price is a 20%discount not 8% (big difference, sorry). I actually found the property you are interested in ... Looks pretty decent (using only pictures and listing data) and luckily is not a short sale. According to the assessors data it was bought in 1992 for $128,000 and is currently vacant. The original price was 359,000 so your offer is actually around a 30% discount and the Malden average is 9% (see below statistics) so your offer is very low and may not get a response. That said, I would be shocked if they didn't negotiate considering Malden is experiencing a pretty tough market right now:
I did a quick search of sold properties in the area with similar square footage, full baths, bedrooms, half baths, and lot size, and in the last 6 months the cheapest one to sell was for $309,000 (it was a drastic price drop, started at $387,555).
Based on all this info it seems like $280,000 might be a stretch but you could always low ball and see where they stand. The other option is to be patient ... see if the property stays on the market and experiences another drop. From what i can see the sellers aren't financially into the property too much so they may be willing to go with a lower offer just to move the property. You never know.
Make sure you hire a buyers agent when you get ready to make an offer :)
I find out how much they paid for it and take into consideration what it looks like they have updated
If they paid 309k and put another 10k in Then I'd offer 319k. Do some homework. You don't want to be taken off the list with a low ball unless it's in pre forcosure.
You need to find an agent that you can work with. In this particular case your buyer agent should cost you no money ( I assume you are talking about Fairmont St.). You need to get your financing in place first. You also need to view the property in person. Use the link below to find out more about buyer agency.
You can also contact me if you want me to e-mail you a 3 month area market analysis for single family homes in Malden
Lot Size: 7743
the house has only been on the market for a month. it dropped 20K at the beginning of april and i just wonder if it'll drop the price any time soon. i haven't taken a look at the property in person but from the pictures online, it looks pretty decent. i make 60K a year before taxes and was wondering how much i can afford. i've been looking around for about 5 months now so yes, i am sort of desperate to buy.
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In the last 6 months 17 single families with 3 beds/1.5baths have sold with that zip code ranging from $182,000-401,000. In the last 6 months there have been 65 single families that have sold and the ale price to original price ratio on those sales was 91% which means the discount off original price was about 9%. Your offer is and 8% discount off the listing price so that is right in the market average. That said you can't always hang your hat on an average because some properties are "hotter" than others (for various) reasons and won't necessarily discount the average.
If you post just a little more info I can probably tell you if that offer is justified.