Home Buying in Malden>Question Details

Jc, Home Buyer in Malden, MA

would 280K be a reasonable offer for a property listed for 339k in 02148 area??? single fam, 3 bd, 1.5bath

Asked by Jc, Malden, MA Mon Apr 28, 2008

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12
Hi Jo,

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.
1 vote Thank Flag Link Mon Apr 28, 2008
Hi JC! As most of my esteemed colleagues have already pointed out many factors need to be considered if the reduced value is justified not only how many days on the market but what the seller(s) current situation might been. Your broker will be able to help you with this process.

GOOD LUCK!

Mark Warren
0 votes Thank Flag Link Wed Oct 28, 2009
Yes, I beleive so, you can also check how many days has it been in the market. If it is a long time that will sounds like a good offering price,but if recently you might wants to go little higher may be 300K.
good luck.

Maha Hanania
Prudential Prime Properties,Wolfson/Cutler Real Estate
366 Salem st.,Medford, MA 02155
cell: 617-407-9830
m.hanania@comcast.net
0 votes Thank Flag Link Wed Apr 8, 2009
I think by list she means out of the negotiating game ... for instance, sometimes when you offer a low ball the seller rejects it out right and won't negotiate with you any longer (unless of course you come back with an offer that has a significant price increase) and resubmit.
Web Reference: http://www.territoryre.com
0 votes Thank Flag Link Wed Apr 30, 2008
Maureen said in her answer that:
"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 ?
0 votes Thank Flag Link Tue Apr 29, 2008
Web Reference: http://www.territoryre.com
0 votes Thank Flag Link Tue Apr 29, 2008
What the owner bought it for is irrelevant to what it's worth in this market so, maureen, be careful when doing that calculation :) Take into consideration market conditions - local sold data - as well as the house and size of the lot.

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:
http://www.territoryre.com/wordpress/?p=322

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 :)

Good luck!
0 votes Thank Flag Link Tue Apr 29, 2008
I'm not an expert but here's the way I do it.
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.
0 votes Thank Flag Link Tue Apr 29, 2008
Hi Jc,
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
0 votes Thank Flag Link Mon Apr 28, 2008
Sqft: 1745
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.
0 votes Thank Flag Link Mon Apr 28, 2008
Wow, you must be rich! 280K for 3 bed 1.5 bath, it better be a historical place with gold door knobs and more. Well every market is local. You need to contact a local Realtor and do a Market Analisys of the property before you write any offer. Here in Fayetteville, NC, 280K will give you a 1/2 acre lot with 2200 sqf 3 bed 2 1/2 bath 2 side entry car garage, hardwoods floor in formal dining and all kitchen, tile of bathrooms and carpet on bed rooms, sprinkle system, privacy fence and even we pay all closing cost. As you can see every market is different. Call a Realtor or if you want I can refer you to one.

Rafael Bustamante
Coldwell Banker
(910) 797-9762

http://www.RafaelHomesNC.com

"All about Customer Service"
0 votes Thank Flag Link Mon Apr 28, 2008
Depends on area, house condition, square footage, size lot and what the person bought it for/loan amount (if they accept a price below loan amount the property would go into short sale).

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.

good luck!
0 votes Thank Flag Link Mon Apr 28, 2008
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