Home Buying in 10305>Question Details

Nancy, Home Buyer in New York, NY

if the asking price of a house is $584,000, what price range should i make the bid for in this market?

Asked by Nancy, New York, NY Tue Apr 29, 2008

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8
Ask a realtor for recent sales data...be very specific that you are interested in only the recent 3-6 months results. realtors are paid on a percentage basis...a handful of unscrupulous types will want to show you 2007 results, which is before the market tanked. Don't be afraid to make a "ridiculously low" offer on a property, especially if its been on the market for a while...nothings moving, and sellers are motivated. Good luck!
3 votes Thank Flag Link Tue May 20, 2008
Ready for some heresy? Asking price of a house should have nothing to do with your offer. Absolutely nothing.

What should guide your offer are the house's value, what you can afford, and how much you want the house.

As for value, you need to determine the comps--the comparables. Based on recent past sales (and added to by what's currently on the market and by what's been withdrawn because it hasn't sold), what is the house really, truly worth? In your case, it could be a great bargain at $584,000. Or maybe the comps suggest that its real value is lower.

Second, how much can you afford? You shouldn't buy a house for, say, $584,000 if you can only afford monthly payments on a $530,000 house. Check with a mortgage broker to see what you qualify for. But look at your own finances to determine what you realistically could afford.

Now you have two numbers: the value of the house and what you can afford. You take the lower of those two numbers. That's the absolute maximum you can spend for the house.

Now, you may want to keep that number, or adjust it down some. If you like the house, but you don't really love it, maybe bump that number down a bit. If you're an investor hoping to rehab and sell it, bump it down by 35%. (I'm not advocating rehabbing in today's market, just making a point that there are reasons to adjust the number.)

So now you have an adjusted maximum number. You can make an offer at that number and hold to it. Or you can make an offer for a bit under that number in case the seller makes a counter offer. How much under? That's both an art and a science.

You'll notice that none of our calculations even looked at the asking price of the house.

Hope that helps.
3 votes Thank Flag Link Wed Apr 30, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Hi Nancy,

What kind of offer you should make is really a loaded question. Without seeing the property and knowing the history of the property, the question is a hard one to answer for anyone. You did not mention anything in you question about how you viewed the property. Is this a general question? Did you view the interior of the home already? Did you go in on your own? Or with a Realtor?

I think the best person that could help you answer that question would be a Licensed Real Estate agent that you would hire to work for you as buyers agent. That Real Estate person would do a great deal of research for you and guide you the best they can in regard to making your offer. When working in a buyer agency capacity the real estate agent can run a market evaluation on the property and that information can help guide you when making your offer. If you do not want to do that than you should do as much of your own research as possible. There are sites on the Internet that can give you an approximate idea of what the market value should be on a specific property. All you need to do is type in the address city and zip code to get results.
You don't want to overpay for a property, but you should be careful not to loose the house by bidding to low if you really like it.
1 vote Thank Flag Link Tue May 20, 2008
Hi Nancy,
I can only tell you to get yourself an agent to help you. You wont regret it.
Connie
1 vote Thank Flag Link Wed Apr 30, 2008
I

Hi Nancy,i t's really unethical for any Realtor to give you advice like that. If the home is 584,000 that's in fact what there asking you to pay. If you feel you feel you like the home, and it's not what you want to pay, you can in fact make an offer for what you are willing to pay. However, like Robert said, if you work with a buyer agent they can guide you, as to what you may want to offer.
1 vote Thank Flag Link Tue Apr 29, 2008
Hopefully you're working with a Realtor. Have your Realtor work up a Market Analysis; this will show the selling price of similar homes in the last few months which is the best gauge of a property's worth. You may also want to know what the ratio of list price to sell price is which is another guide.

There are many intricacies involved and a Realtor will have access to all the information. You may have access as well but it will take longer searching it out on line. Also, as a buyer, there is seldom any additional cost to you when using a buyer's agent. Look for a Realtor who's also an Accredited Buyer Representative (ABR). Good luck, aloha
1 vote Thank Flag Link Tue Apr 29, 2008
If you hire me as a buyers agent, after giving you all the information that is needed, then I could tell you what you could offer. I am a CBR, a certified buyer representative. I believe you are asking about a house on Burgher Avenue, I would be willing to show you other homes also.
0 votes Thank Flag Link Wed Jun 4, 2008
Give me a call at (718) 698-2179 at Prosperity Real Estate Group, We are on Richmond ave as well, I can help you answer any questions you may have regarding this matter, although I will not tell what to offer, there are many factors you should consider when you put an offer. This is not commitment to come with us. YOu can come and inquire about this even if you are already working with someone. Buying a properity is a constitutional right, and we are here to make sure you are not provided with erroneous information. We welcome this questions because it allows us to do research for you and ourselves which we can share with others.

My Name is Caesar Galindo Office manager, and Law Student at CUNY Law School.

My Name is Caesar Galindo Office manager, and Law Student at CUNY Law School.
0 votes Thank Flag Link Wed Apr 30, 2008
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