Home Buying in McKinney>Question Details

Michael, Home Buyer in 94605

My wife and I are planning on moving to the McKinney,Proper, Frisco area and found 9 homes that we really

Asked by Michael, 94605 Wed May 7, 2008

love. Any tips on the best way to bid on the homes. Does it make sense to offer the avg per sq ft of recently sold home?

In an ideal world we would just state how much we want to pay and the first buy to bite would sell their home.

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Hi Michael,

Buyer's have unique needs that are different than sellers. A buyer's agent also does not cost you anything, but may save you tons in the long run. Have you been here yet to check out McKinney, Frisco and Prosper and the specific areas where you're looking at the homes? What's important to you? What's your lifestyle? What do you like to be near? Where are homes selling the best? Where will you get the best resale? What is planned to go up around that area? If you had to leave in 2 years, where would be the best investment? What do the local comps look like?

Would you be open to talking to someone like us to see if there's a fit and we can help you with this process? I hate to see you just throw bids at the wall and see what sticks. We can help you do this where you can get the home you love, but you do it with your eyes wide open.

Thanks,
Terri Hayley
2 votes Thank Flag Link Wed May 7, 2008
Any good buyer's agent will have a very good idea how to represent you on this purchase. If they've been in this area longer than 10 years, they can remember when these neighborhoods were just pastures. We've worked with the builders and the resale community and we can judge a home on it's own merits and come up with a price range for negotiating the home sale that should be spot on. These are communities that have a high percentage of upgraded homes, and we've been in buyer's market conditions for about 15 years. If we're not priced to sell, then we're not getting showings. Unless you find condition issues in the home that you feel you can use as leverage, resale homes are still likely to sell above 97% of list price, and some are justified best buys at full list. We're not a market that builds fluff into our list prices.
Web Reference: http://www.rondaallen.net
0 votes Thank Flag Link Mon Aug 11, 2008
Michael,

If you want a win win situation always put yourself in the other person's shoes. Unfortunately today the home buying process has become so impersonal that we often forget that we are dealing with real people. Most people are looking for a fair deal. Do your research and make sure the house is priced within market to begin with, if so don't be afraid of making an offer to get the ball rolling. If you are within market range (even at the low end) usually you will get a counter and that will give you an indication of what a seller is willing to do. Don't be afraid to negotiate, it's all a part of the process. But remember to be respectful of the other party, this is an important investment for them too and nobody wants to feel like they are being taken advantage of. If they are not willing to negotiate to a fair market deal then be prepared to move on. That's my advise..best of luck!
0 votes Thank Flag Link Fri Aug 8, 2008
Michael - as a buyer, you are in a good market. There are lots of inventory to choose from so if one seller doesn't accept move on because there are plenty of other homes around. Be sure to find good schools and great amenities for future resale value. Be sure to work with a local Realtor who is knowledgeable and can provide good advice on what your family needs. Check out my website for great property photos and fun browsing features for buyers. http://www.janusREgroup.com. Let me know if I can help you find that perfect home.
Web Reference: http://www.janusREgroup.com
0 votes Thank Flag Link Tue Jun 17, 2008
It's all about the schools! If you have kids make sure that you research what the schools are like. Also make sure to get in touch with a realtor to help make sure that you are getting the best deal. Good luck!
0 votes Thank Flag Link Thu May 8, 2008
Market price is the price level where the seller has agreed to sell and the buyer has agreed to buy, therefore, why should you not aim for the best deal? But how do you know that the price you are offering is a good deal for that particular home? That takes a Realtor. Before you make an offer on any home in our area, you should have your Realtor prepare a comparative market analysis to see if the home is priced appropriately for its subdivision and what the selling prices have averaged for the same type and quality of home in the past 6 months. You also should employ a Realtor if you are buying new construction, as many times those prices are variable as well. Why? Many of our subdivisions are built by two or more different level of builders, so two homes that look similar may not compare in quality or value. If you are wanting to get the best price, your Realtor will use the CMA to assist you in creating the offer that is best for you in price and terms. If the seller rejects your offer, or counters it in a way that is unacceptable to you, you can terminate the offer and move onto the next property until you are satisfied. The main thing here is that you be represented by a knowledgeable, local Realtor that works on your behalf. Please note that the buyer's Realtor most times is compensated by the commission paid by the seller and is free to the buyer. Some firms charge a fee to the buyer, but most don't. Keep in mind - the seller's have their Realtor looking out for their best interests, you should have a person in your corner as well.
0 votes Thank Flag Link Thu May 8, 2008
I'm confused by your question as well. Are you planning to buying more than one home? If you aren't, I'd say you all need to sit down and narrow your choices. Taking a shotgun approach could be very costly and is guaranteed to be chaotic. Keeping track of the paperwork alone can drive you crazy. Will you be putting down earnest money with each offer and an option check with each offer?

From the tone of your post, I take it you don't have a buyer's agent. I'll add my voice to the others and say that you need to work with a realtor. It sounds like that is the next step for you.

When you say "bid" if you mean that you are bidding on a HUD foreclosure only realtors can submit bids to HUD through the electronic bidding system. If you meet you're planning to bid on an on-line auction, be careful.

Another question: have you actually seen these 9 houses? I would discourage you from buying something sight-unseen. I worked with an out-of-state client who wanted to do that and had never even been to Texas. When she actually came done to look, she didn't like any of the houses she'd loved on the internet and ended up building new.
0 votes Thank Flag Link Thu May 8, 2008
I would say absolutely on making a contact offer based on the average s.f. prices of recently sold homes.
I hope you are working with a local agent, as we know our local markets.

Good luck...
Web Reference: http://www.bigdrelo.com
0 votes Thank Flag Link Thu May 8, 2008
Michael,
Good question....
1. Get prequalified and provide your prequalification with your offer.
2. Write the offer with your realtor on the appropriate contract forms.
3. There are lots of different considerations for offer price and you describe one appropriately.
4. You offer an interesting idea in a down market, and that is getting sellers to bid for your business.

Some might bite at this idea, some will ignore you, but if you want to try to put something together to work this proposal, I'd certainly be willing to work with you to structure it the right way. I will tell you though it is very unusual for one buyer to find 9 homes that they are equally interested in. Have you been inside all the homes? Let me know if I can assist you.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Wed May 7, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
MICHAEL WELCOME TO TEXAS,

CONCERN: Never purchase a home or lease a home UNLESS you have your own real estate agent not deal direct with a builder, seller, listing agent, or the bank. We answer soooooooooo many calls and emails on a daily bases where buyers have made that mistake at that time EXTREMELY tooooo late for a realtor to become involved

NOTE: When you have a real estate agent who reprsents you'll fall under their E & O insurance, a realtor and their broker who can defend you, getting involved with real estate without proper representation you can be sued. Besides there are many particulars a seller must follow in the State of Texas must comply with the law if they don't using a Dallas real estate agent can enforce the seller comply with the manadated laws

QUESTION: I don't know what you mean in regarding "bid on homes" are you talking about Dallas HUD home, Dallas bank foreclosure, Dallas builder property? I am at a lost in order to answer that question

ANSWER: "Make sense to offer the avg. per sq. ft of sold homes" ... How do you know what the average sq. ft is if you don't have a real estate agent working with the CMA's on the property to secure a winning bid. There is more involved in order to submit an offer on a property to win a bid, and determining what price tooooo offer.

LOW BALL OFFER: If you wanted to low ball an offer it depends on many factors if you low ball in an incorrect way it can insult the seller, bank, builder, listing agent it can turn against you where you loose that opportunity, shut down the negotiations, it can cost you $1000's more at closing. There is a right way to do so

DALLAS REAL ESTATE TO SUBMIT an offer: In order to submit an offer you must be pre-approved for a loan, the letter must be attached to an offer. No builder, seller, listing agent, bank, will consider an offer unless you have the lender letter

TEXAS LENDING: I am a Dallas home mortgage loan officer & Dallas real estate agent, there are many nationwide consideration that recently took place your financial files need to be in order. I just declined an offer on one of my listings I know what works the buyer was no longer qualified to purchase the property that changed over the past 30 days I hated to decline the offer however lenders are now tough

DALLAS REAL ESTATE: McKinney, Prosper, Frisco, I just had a GREAT couple who is relocating in this area YES I showed over 215 homes to them, I have been in many GREAT foreclosures below market value move in quality, and either Dallas new home foreclosures from a builder, or less than a few years old

BUYER REBATE PROGRAM: We offer a buyer rebate program where you can earn up to 50% of our commissions which saves you $1000's .

Contact my office if I can be of any further assistance
Lynn
972-699-9111
911@lynn911.com
http://www.lynn911.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed May 7, 2008
Michael,

Making an offer on a home is the easy part...negotiation is a little more difficult and is almost becoming an art form because of the numerous ways to structure the offer. To answer your question, offering the average price per sqft would only get you an average deal. In this market, a Buyer should not set their sites on average but instead shoot for a great deal which means that you would pay less than the average. And, in addition to the actual Sales Price, this could include such things as a Seller contribution to your closing costs, home warranties and other items that would not only be to your benefit but also make the home an overall better value which will help you at resale time.

You will hear a lot of Realtors talk about being a strong negotiator. Well, there is a better way to negotiate and that's being a smart negotiator...knowing how to structure an offer so that it provides the maximum benefit to you the Buyer.

You can certainly do this on your own. But you do run the risk of not taking advantage of every possible bit of leverage that you have as a Buyer in a Buyers market.

Thank you for using Trulia Voices and if I can answer any questions you may have, please feel free to call or email. I am happy to help in any way that I can.

Alan Wynn
Like NO ONE Else!
214.729.5582
info@DallasHousesOnTheWeb.com
0 votes Thank Flag Link Wed May 7, 2008
I wouldn't go that route. I would be specific to the house you are looking at. Average price per square foot would be a good starting point but it would not be specific to the house you are looking at. The amenities or condition of the home may be different etc. Also, we have had so many foreclosures, that you would have to take that in to account when looking at what some houses have sold for - they may have been stripped of all their appliances or not well cared for thereby having a lower sales price. if you are looking at foreclosures, remember that all the outlay of costs (inspectors, surveys, appraisals, HOA dues) for the most part falls on you. Most banks will not infuse any cash in to their properties. This would be something to consider if the deal falls through for whatever reason. The best thing to do is have your Real Estate professional give you their opinion of the value of the home you would like to make an offer on and then tweak it based on your feel for the home.
0 votes Thank Flag Link Wed May 7, 2008
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