A home is 424K and needs work...what is a good offer?

Asked by KGordon, Los Angeles, CA Sat Apr 26, 2008

If seller is askng 424K what is a good offer if home needs major renov such as kitchen, new furnace?
House is nice and charming, but very old and needs major renovations like the kitchen, the furnace is nearing the end, the carpets are very worn, etc. Although it's been checked on no one has occupied the house for 2 years...so what would be a reasonable offer...it is priced quite high at 424K? Would 379K be acceptable?

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7
Deborah Madey, Agent, Brick, NJ
Sun Apr 27, 2008
You need an agent with backbone. The agent may need their broker to phone the broker of the listing agent if there is resistance. When choosing a buyer agent, apprise them of the details and ask them how they intend to handle any resistance.

Backbone does not mean that your buyer agent needs to come out of the pen like a bull. It is not in your best interests to hire a buyer agent who is going to be smart or antagonize the situation. The agent simply needs to be confident, articulate, and knowledgeable about what is or is not allowable.

Good Luck,
Deborah Madey - Broker
Peninsula Realty Group
(732) 530-6350
Deborah@PeninsulaFirst.com
0 votes
KGordon, Home Buyer, Los Angeles, CA
Sun Apr 27, 2008
Thank you all for your input it really helps. We are just worried now because we are afraid if we go back to the seller's agent who won't put in our offer and ask her to cancel our obligation if we really even have one..that somehow she will have influence in rejecting our offer through another real estate agent? Could she sabotage our offer because she didn't like it or because she is angry? We definately need to find an agent ourselves but we feel as though we are in a "catch 22."
0 votes
Deborah Madey, Agent, Brick, NJ
Sun Apr 27, 2008
What’s up with Realtors deciding not to present offers? I have read a handful of thread that tell this story in the last few days, and I experienced it first hand myself last week. What’s up with that?

I keep a broom and a witch hat in my closet, and hate to have to pull it out. But, when push comes to shove, this is just intolerable, so I unlock my closet where I keep my hat and broom stored. I just don’t get it!

Get yourself a buyer agent to write and present the offer. Make sure the buyer agent has some backbone, it might be needed. If the listing agent attempts a claim at procuring cause, I believe the claim will lack merit. In any hearing to determine procuring cause, the agent would have to admit she declined to present an offer. For that reason, I doubt the agent would even attempt a claim.

Get yourself a strong buyers agent, write your offer, and go for it. Have your buyer agent run new comps for you to validate the data you currently have.

Good Luck,
Deborah Madey - Broker
Peninsula Realty Group
(732) 530-6350
Deborah@PeninsulaFirst.com
0 votes
Matthew De F…, Agent, Nutley, NJ
Sun Apr 27, 2008
I would say that is not a bad offer you can always negotiate your way up, remember an offer is not an offer until there is an earnest money deposit with a contract NO VERBALS!
Web Reference:  http://www.njproperty.info
0 votes
Gina Chirico, Agent, Fairfield, NJ
Sat Apr 26, 2008
ABSOLUTELY! Get rid of her and have your offer submitted by your own BUYER'S AGENT and have them submitted directly to the owner. Irregardless of what she feels about your offer - she has to write it up and present it - it's up to the homeowners to decide if they want to negotiate or not - NOT HER! That's an outrage. I do not frown upon dual agency (when it's handled correctly) but when I hear something like this - it really gets me furious. Before I was an agent, we bought our first house through a dual agent and if I know 1/4 then of what I know now - things would have been a lot different.

Definitely walk away from this agent with no further obligation to her and get your own agent. Make sure you tell your new agent about what had happened so they are not blindsided by this "dual agent" trying to fight for the entire commission should you buy the house.

Best of luck to you. Please feel free to contact me directly should you wish to interview me as a Buyer's Agent.

Gina Chirico
Prudential New Jersey Properties
973-228-1000 ext 132
973-715-1158 (cell)
GinaChirico@PruNewJersey.com
0 votes
KGordon, Home Buyer, Los Angeles, CA
Sat Apr 26, 2008
Gina, other comps in the area are 389K, 399K 415K...so they go up and down. The house btw is in northern NJ...the problem is the realtor thinks 379K is too low and won't submit on our behalf...she made us do all the paperwork, etc...then asked what we'd offer and then said she wouldn't put it through...we were hesitant to have her as the realtor because she is dual representing...so should we ask her to cancel any obligation we may have and get a realtor who will show the seller our offer?
0 votes
Gina Chirico, Agent, Fairfield, NJ
Sat Apr 26, 2008
Hi K. Not sure if you are buying in NJ or CA because your name refereces Home Buyer in Bur, CA. Anyhow, it really depends on if the house is priced right to begin with. You reference it's priced quite high...to you have comps that support that or is that your opinion? Because the numbers don't lie - if its within its comps - even if you think it's high - it may not be. Obviously you've seen the house and are familiar with it. Are you working with an agent? If so, have then run the comps and compare the numbers and that should give you an idea of what the house is worth in its condition. Again, if you are working with an agent, don't just take their advice on what to offer - have them back it up - you surely do not want to overpay for a house either.

Honestly, only the seller knows what they will accept as their bottom number (sometimes they even lie to us agents). So after the comps are run and you have that number you can still offer whatever amount you want for the house. The seller can either accept, counter or deny your offer. Do not try to negotiate the other things that are visible to the eye later on during attorney review or inspection. You already know the kitchen is old, the carpets are worn, older furnace, etc. Make your offer from the beginning based on all that you know already.

Good Luck

Gina Chirico
PNJP - Caldwell
973-228-1000 ext 132
GinaChirico@PruNewJersey.com
0 votes
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