Home Buying in Kearny>Question Details

Christopher…, Home Buyer in Kearny, NJ

I want to bid on a condo for sale for 310 in which the buyer does not have an agent. What is a reasonable?

Asked by Christopher Kukowski, Kearny, NJ Sun Jun 8, 2008

first offer. I was thinking 270-275.

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It doesn't matter what the asking price is. And it doesn't matter whether the buyer (or, presumably you mean the seller) has an agent. That's as meaningless as the number of letters in the condo's name.

The primary thing that matters is what the condo is worth. If it's worth only $265,000, then you're overpaying at $270,000. If it's worth $350,000, then offer less if you want, but it's a great value at $310,000. So, forget asking price. Focus on its true value. And that figure is the ceiling price you should pay. Not a penny more.

You also have to consider what you've been prequalified for. Further, regardless of preapproval or prequalification, your comfort level may be lower. A lender may say they'll fund you up to $300,000, but maybe you know that you really wouldn't like to spend more than $285,000.

Now you take "true value" and your "comfort level number." The LOWER of those two becomes your ceiling price.

Now you can offer that amount, or some number lower than that.

That's how you determine a reasonable number.

Hope that helps.
1 vote Thank Flag Link Mon Jun 9, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Christopher,

Again reading your post and your response and I am still unclear as to your question. In your original post is it the seller or buyer without an agent? And in your response, the agent will be paid a commission on the sales price (whatever price that may end up being). I cannot give you advice on what to offer on a condo that I have not seen nor do I know what the sold comps are. Is it a FSBO and that is why there is no real estate agent involved?

Clarify the question for a better response.

Gina Chirico, Sales Associate, Realtor
Prudential NJ Properties
973-715-1158 cell
973-239-7700 ext 132
GinaChirico@PruNewJersey.com
1 vote Thank Flag Link Mon Jun 9, 2008
It does sound like what you intended to say was that the seller does not have an agent. Making an offer is not a simple decision. Many factors should influence what you offer. Has the condo been on the market for a long time, is the seller willing to pass on commission savings to you and the most important criteria for your offer is what is the condo worth?
The market has been so different this year that the only way to evaluate this is to determine what sales have taken place in the past 3 months for similar properties. Older sales are not usually a good indicator because of our constantly changing market.
Many times buyers think they will get a deal buying a FSBO. Sometimes this is true, but often it turns out to be a negative experience for both parties because there are so many considerations in a contract. Often we find that the value people initially feel they received by leaving out professionals, simply was not there.
Good Luck with your home purchase!
Web Reference: http://www.LGRealtor.com
1 vote Thank Flag Link Sun Jun 8, 2008
Do you mean the SELLER does not have an agent? It sounds form your post that you want to buy a FSBO and are looking to get a bargain. Why would you want to go in 40k under asking price? is the condo overpriced from everyhthing else that is on the market? or are you assuming that the FSBO will take less because they have no commission to pay out?

Clarify the the question for a better response.
1 vote Thank Flag Link Sun Jun 8, 2008
Christopher,

If you do not have an agent, are you going to use the listing agent to present your offer because then that agent will become the dual agent working for both you and the seller. My best advice is for you to get your own agent..a buyer's agent to represent you. As stated before, it will not cost you anything as the sellers pay the commission but at least you will have someone looking out for your best interests.

In addition, your agent will run the most recent sold comps so you will have knowledge as to what a reasonable offer is to at least open negotiations. Unless an agent knows exactly what property you are referring to and the comps supporting the price and the comps supporting the offer - nobody can really tell you what a reasonable offer is. The numbers don't lie and you should rely on the numbers.

Good luck.

Gina Chirico, Sales Associate, Realtor
Prudential NJ Properties
973-715-1158 cell
973-239-7700 ext 132
GinaChirico@PruNewJersey.com
1 vote Thank Flag Link Sun Jun 8, 2008
Its a good starting point, do you have an agent yet? you really should think about getting one to represent you it does not cost you anything.
Web Reference: http://www.njproperty.info
1 vote Thank Flag Link Sun Jun 8, 2008
how's $234,000.00 or best offer?.. must see.. no agent just want to move south... NJ Great heating bills, security $170 washer dryer and pretty nice... Cant go too wrong without an agent with condos...
0 votes Thank Flag Link Sun May 3, 2009
Christopher,

The basis for your opinion of value is flawed. Without sales data, you cannot make an accurate assessment. Nor is the fact that a property has been on the market over a month a measure. It's common in good markets for homes that are priced well to sit on the market for over two months, and some can sit much longer for reasons that are inexplicable.

You would serve your own best interests by making a buyer agency agreement with a EALTOR member of the MLS who can provide you with the guidance you need. It will likely cost no more to do so, and it can save you many another cause for grief.

If you need validation of the importance of an agent, you will find it and answers to many another question on the HUD Web site:

http://www.hud.gov/buying/comq.cfm
0 votes Thank Flag Link Mon Jun 9, 2008
I'm thinking 40k less than asking because I believe the price is a little high, there's an identical model in the development that's been sitting there for 299 for over a month, and I'm assuming that it should also be a little less without commission.
0 votes Thank Flag Link Mon Jun 9, 2008
Hi Christopher,

With no obligation, you can come in to my office, either in Kearny or North Arlington, and we will be glad to show you all the recent comparables.

You wil then have a realistic idea of the market value of the condominium, I'm sure you do not want to overpay.
Web Reference: http://www.exitgolden.com
0 votes Thank Flag Link Mon Jun 9, 2008
I don't understand how there is no price to an agent. They want their percentage. There has to be a price.
0 votes Thank Flag Link Sun Jun 8, 2008
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