Home listed at 01/2006 sale price. What's a fair offer?

Asked by Ben Jones, 20815 Sun Jan 25, 2009

Home was completely updated (on the inside, but new roof, appliances, furnace, etc.) and then sold (unlived in) in 01/2006 for $575K. One owner since then and they are now listing it for $574K. The home is in the Capitol View Historic District (MLS# MC6954572). This seems over-priced and so I was wondering what people thought was a reasonable starting spot for an offer. It seems to me that $500K might be a fair price to pay but I am not a real estate professional.

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Arthur Hardy, Agent, Beltsville, MD
Mon Sep 14, 2009
It would be to your interest to hire and work with a professional realtor. One of the reasons for the pricing of this home being higher is because it is in the historic district. I would suggest you speak with a realtor familiar with this district in particular and historic homes in general. While buyers often love historic homes, it is often common that the best value of the home is lost if the updating has not been done with the history of the area and the house in particular are not considered.
You will need guidance to price and purchase a home like this not only for the right price but to maximize your value.

Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Suite 119
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct
web arthurhardyjr.com
email arthurhardy@LNF.com

Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.
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Bruce Lemieux, Agent, Gaithersburg, MD
Sun Jan 25, 2009
Ben - glad to see that you're "back in the saddle" looking at homes again. You and your agent should study recent sales to come up with a fair value.

Coni's point is right on. If you do move forward with a purchase offer, have your agent confirm that the seller isn't in a short-sale situation. If the seller does need to get bank approval close the deal, then expect the contract process to take a loonnnngg time.

Good luck. Maybe this the one?
Web Reference:  http://mocorealestate.com/
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Coni Otto, Agent, Burtonsville, MD
Sun Jan 25, 2009
Hi Ben,

If the home was sold in 2006 for $575,000 and now on the market for $574,000 the owners are taking a loss and is probably subject to "third party approval". Of course I cannot be positive but if this is the case then any offer you submit would have to be approved by the bank.

Also your agent should do a market analysis for you on any property you are interested in so you know what the other houses in the neighborhood are selling for and so you don't over pay.

Hope this helps, Coni Otto
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Michelle Buc…, Agent, Washington, DC
Sun Jan 25, 2009
Your agent should assist you on what to offer for the property. Your agent can look up the comps and see what recently sold in that particular neighborhood. Good Luck.
Michelle Buckman
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voices member, , 21117
Sun Jan 25, 2009
Without having visited the home, but going on the info you are providing you offer seems perfectly in line with today's market trend. I would be happy to run the comps for you so you would have a better sense of that neighborhood's activity. But in general, unless a particular area is experiencing stability or increased value, a price paid in early '06 is quite a bit more than what the property's current value is. That was the very height of the market and as you know, we are now near the bottom. I hope this helps a little! Good luck and congratulations to you!

Lisa Devnew
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Ben Jones, Home Buyer, 20815
Sun Jan 25, 2009
Hi Robyn,

thanks for the answer. We are working with someone but I always find valuable advice here on Trulia and was hoping to see what others thought about the general situation (of a home being listed for it's purchase price at the peak of the market).

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Robyn Porter, Agent, Bethesda, MD
Sun Jan 25, 2009
Hello Ben.

The best course is to have your agent run the comps in the neighborhood. That combined, with the home's condition and your agent's expert opinion, should help you develop a good offer price. If you are not working with an agent I am happy to accompany you to the property and come up with a suggested offer price.

Web Reference:  http://www.robynporter.com
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