Bruce Lemieux

Hi Himanshu,

When you work with a Realtor that represents you as a buyer, he/she can take a detailed look at comparable home sales and current inventory. With this information, you get a fair value for a home in today's market.

There's a few buyers in Germantown and surrounding areas thinking that they can purchase a home 20%, 30% or more below current sales. It IS a great time to get a great value on a home purchase, but you've got to be realistic. The reality is that homes are still selling. Right now, there are about 445 homes available in Germantown priced under $400,000. This sounds like a lot - and it is. However, about 750 have sold or are under contract in 2008. So the market here isn't dead. It's tough to sell, but homes ARE selling. Why would a bank, or any other seller, take a very low offer below recent sales?

If you are serious about buying, get experienced help from a Realtor that knows your area -- it doesn't cost you anything. Your agent can help give you a clear picture of the current market, and can provide data that supports an aggressive offer. Putting in a low offer without any supporting data reduces your chances of success.

Good luck. - Fri Oct 31 2008, 17:34

Ha! Ha! Ha! Ha! Ha! Ha! Ha! Ha! Ha! Ha!

Sorry Omid, I can't help myself. I can't imagine any seller that would want to have 70 strangers in their home at no charge for something like this. I try to picture my client's face as I pitch this "unique" marketing idea. Oh man, it would be the last meeting we would have before they fired me!

I admire your ingenuity. I look forward to your I-told-you-it-could-be-done post in December. Good luck with finding a place for your party -- and good luck with your engagement! - Fri Oct 31 2008, 14:11

Himanshu,

With a bank or any seller, ultimately you offer the max that *you* are comfortable with. There's a lot of homes available in Germantown in this price range, but there are also buyers closing deals. Have your agent provide an analysis of available inventory in the area. Also, highlight comparable homes that are listed or have sold for $280,000. If your offer is significantly lower than anything that's sold or is available, then your odds of getting the home at your price are pretty low.

If you are set on this price, see if you can make it work. If not, wait for the next one.

Good luck. - Thu Oct 30 2008, 09:39

Hi Sandy,

Modular homes in Montgomery County are very rare. I would say there's a general bias against modular homes with buyers. There's a general perception that the quality is not up to par with site-built homes. In reality, however, the construction can be superior in many regards. Since these are transported, the framing must be sturdier given that it's shipped from a factory. Modular home builders also have the opportunity to do a much better job of quality control since the homes go down a factory line with very skilled employees that do the same thing (plumbing, drywall, etc) over and over again.

I've always expected that we would see more and more modular builders given the big advantages they have. However, the economics just haven't been there. To be cost effective, the 'factory' has to be within so many miles of the home sites. If it's too far, all economic advantages evaporate with increased shipping costs. I believe that a couple of our big local builders - NV, Pulte and maybe others - are doing more to assemble house sections in a factory and delivering them to the building site.

OK, so what do you do?
#1. Check out the builder. You should even visit the factory if possible. Get references from previous homeowners that have been in their home 5 years. What has their experience been?

#2. For re-sale, be aware that some buyers may have a bias against modular homes. So, when you buy, I would negotiate lower than if it were a site-built home. Having said that, given that modular homes are so rare here, very few buyers or agents are familiar with this type of home. When it's time to sell, they may not even know its modular.

Good luck - I hope that helps. - Sun Oct 26 2008, 08:34

Sandy,

As a Realtor, I can stay up nights wondering if a contract is going to fall apart because a buyer's mortgage company 'changes its mind' and decides it doesn't want to fund a loan. The reality, however, is that once approved, loans are definitely being made. The big difference that I've seen is that the approval, underwriting and appraisal processes are much more stringent. Once you get through these hoops, however, loans are being made. If you have great credit and cash for a downpayment, then lots of companies will loan you money for a home purchase.

Good luck. - Sat Oct 25 2008, 15:49