Evaluate first the market value of the property without regard to the financing situation. What is the property worth......in an arm's length transaction, to a reasonable buyer or seller without undue duress or stress. To calculate this, hire a buyer agent or an appraiser. Look at comps, current inventory, and market trends.
With a fair market value number in mind, what do you know, if anything about the seller motivaton? These sellers might easily qualfy to re-fi into a different mortgage program. (They most likely cannot re-fi while listed.) If they do not re-fi and their payment adjusts......even $400/month.....that represents less than 5k in a year. The sellers won't drop 25K to save 5K...... if the adjustment is the only challenge. What do you know about their motivation? Are they moving out of the area? Will they sell only at that number, and move to a larger home in the area? Are they strapped in their current payment? Or not? You might not know the answers to these questions. (As a seller agent, I do not pass on this info, and I advise my sellers to not share this info!) For you, as a buyer, it is helpful to know.
I wouldn't take advice from the owner agent.....who has a vested interest in the property. I am not saying the person will be dishonest. An agent-owner can be emotional about their property and see things from a different perspective.....not unlike any owner. Get your advice, comps, etc. from a party who is not biased toward this property.
How much is the property worth when looking at comps? data? inventory? market trends?
What is the seller motivation and how might that motivation (or lack of ) influence the $$ for the first question?
Notes re: earlier posts....
Hi.....An accepted offer of 550,000 would require the seller to come to the table w/ well in excess of 100K in cash...or athe bank accepting an offer far below the loan payoff. Unlikely and unrealistic advice. Yes, there is free speech, and if you can support your figure for 550,000 with data, facts and figures, it might be worth posting. Pulling numbers out of the sky and posting these 100x a week just points to spam. If you can repost with number of solds in 02639 for the last few years, bar graphs showing trends, aborption rates, average DOM, average list to sale, current inventory, current absorption, trend line for absorption for the last 3-4 months, comparisons for this year to day compared to last year to date, your number might have some meaning. Please do post if you can offer substance. If not, then quoting or recommending a suggested offer price is spam.
JR...Thanks for 624 worthwhile posts!
Deborah Madey - Real Estate Broker
Peninsula Realty Group - New Jersey