I am first time buyer, knowing the listed price of a house, I need to know the best way to determine the offer price?

Asked by Alejandro Lopez, Houston, TX Fri May 3, 2013

I am interested in a pre owned house, listed price is 230k, I want to make an offer, I am first time buyer then I need to know how to determine a fair offer

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18
Ron Thomas, Agent, Fresno, CA
Fri May 3, 2013
BEST ANSWER
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
1 vote
Robert Picard, Home Seller, Portland, ME
Fri May 3, 2013
Lots of things factor in to the price of a home. Using a realtor your first time through the process is worth every penny!
1 vote
Mark McNitt, Agent, Houston, TX
Fri May 3, 2013
Alejandro,

Your best bet is to speak to a seasoned Realtor that works in the area!

Realtors can see the sale prices of others homes near by and help you determine if this $230,000 sale price is in the same range. They will be able to see the history of this home (has it been on the market a week or 6 months?) as well as price trends in the area (going up? going down?). Finally, the Realtor be able to advise on what kind of offer to prepare.

Homes in Houston are selling quickly once they go on the market, but not all of them. Be prepared financially before you start looking at home so you can move quickly. Let us know if we can help.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
1 vote
Sharon Frits…, Agent, Houston, TX
Fri May 3, 2013
Good Morning, Alejandro --
Have you already spoke with a lender/loan offer to get pre-approved for a loan? The current real estate market in Houston and surrounding areas including Katy has a shortage of housing inventory on the market and a surplus of buyers -- definitely a seller's market where multiple offers are typical. Many properties have offers submitted within hours of being placed on the market for sale. It's a fast paced market and buyers need to be quick with decision making. It would definitely be in your best interest to have a Realtor represent you to provide you with information, so you can make educated decisions quickly in this current market.

If you haven't been pre-approved with a lender, you need to start with this step. Sellers will not even look at your offer unless you have documentation from your lender showing you have been pre-approved. Once you're pre-approved, find a Realtor you are comfortable working with and trust, so he/she can represent you and help you, so you can make the best decisions for your real estate goals.

If you have already taken the first step of loan pre-approval, it would be a privilege to assist you in purchasing your first home. I have assisted many first-time buyers and have worked in the Katy area for many years.

Contact me if I can assist you further.
Sharon Fritsche, Realtor
Real Estate Broker
Step By Step Real Estate, LLC
(713) 303-8160
Sharon@StepByStep. pro
1 vote
Al Geffon, Agent, Houston, TX
Fri May 3, 2013
Alejandro ...

The property you referenced is currently under contract. The asking price was $204,000, so I assume that you're looking at another home.

There's much to consider these days. Right now, we're in a sellers' market, meaning that there are more qualified buyers than available homes ... supply and demand, pure and simple. What you need to know is ...

How active is the area ... are properties selling quickly, or does it take a while?
How long has the home been on the market?
Has the original asking price been reduced?
Have there been any contracts that have fallen through? For what reasons?
Is there a recent inspection available? If there is, it must be disclosed, and you can see it.
What other properties in the area are available, and for what money? How long have they been around?
What homes have recently sold, and for how much (both per sq. ft. and percentage of the asking price)?

Only a Realtor can provide this information. It is our responsibility to act in the best interest of our clients, and we take it very seriously. Add the fact that there is no cost for our services to you as a buyer, and it's a no-brainer.

Let's discuss this further. I look forward to hearing from you.

Regards ...

Al Geffon
(713) 213-6350
al@geffon.net
Web Reference:  http://www.har.com/algeffon
1 vote
Debbie Russe…, Agent, Houston, TX
Sun May 5, 2013
Every area has a definite percentage ratio between list price and sales price and for each price band. Price band being $0 to 100,000 then $100,001 to $200,000 , etc. a pretty CMA with pictures and color, etc. is flashy and at first glance impressive. There is nothing like to cold hard data statistics. If you are attracted to the home so are multiple other buyer. Visit my website at http://www.debbierussell.com to research this type of data that I have been publishing since February 2011 for the Clear Lake area. There you can clearly see what homes sell for. This same formula can be used for every subdivision within http://www.har.com. Always ask for a statistical breakdown and pass o. The pretty CMA
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Sat May 4, 2013
Hi Alejandro

As a first time buyer do work with a Real Estate Agent, who will do a Market Analysis
for the Area and a Value analysis for the property.

Also, the agent will find out if there are other offers, or any incoming, what if any inspections are doen, issues etc.

Good luck
Ruth
Web Reference:  http://www.ruthandperry.com
0 votes
Dorene Slavi…, Agent, Torrance, CA
Sat May 4, 2013
Dear Alejandro,
The best way to know what to offer is to get the statistics you need from a local realtor. Choose one that works in the area that you want to purchase in and who is familiar with the surrounding property values.
0 votes
Arnold Richie, Agent, Houston, TX
Sat May 4, 2013
You need a Realtor! Why anyone would try to purchase property without their own representation is beyond me. Usually costs you nothing.
0 votes
D'Evereaux B…, Agent, Houston, TX
Fri May 3, 2013
Hello Alejandro, I strongly suggest that you hire (for free to you) a Realtor to help you purchase your first home. There are so many aspects that go into the homebuying process and it costs you nothing to have the representation as we are paid from the Seller. I am very familiar with this neighborhood and would love the opportunity to help you and guide you through the process.


D'Evereaux Baum-Moore
Realtor / New Home Specialist CSP
Phone: (281)705-2698
Email: devereaux@interowestave.com
Blog: http://www.trulia.com/blog/devereauxbaum/
http://www.interowestave.com/

Intero Real Estate Services
0 votes
Sunny Goode, , Houston, TX
Fri May 3, 2013
Find A good REALTOR. They can help you get pre-approved with a mortgage broker and have more negotiating power when you are prequalified ($$$ speak to home owners that know you are making a serious offer) A Realtor will be able to prepare a CMA for you (Comparative market anaylsis) so as to offer a realistic offer on the home. A realtor representing you as a buyer can be objective, although they receive their commission from the sellers agent/homeowner, they are still obligated under contract to represent you in your best interest. Hope this helps. Good luck!
0 votes
Lerma Sampang, Agent, Houston, TX
Fri May 3, 2013
Good morning Mr. Lopez,

The best way to go about this & determine a good offer is to consult with a real estate professional who can represent you. It's a hot real estate market out there today so don't go it alone. I will be happy to help.
0 votes
Lina Botero, Agent, Houston, TX
Fri May 3, 2013
You are welcome to email me at Lbotero@kw.com. I'll be more than happy to help you out. (for some of my clients convenience, I speak Spanish as well).
0 votes
Persis Behra…, Agent, Cinco Ranch, TX
Fri May 3, 2013
Hello Alejandro,

The link you are refering to does not show the listed price at 230K. If you are referring to another property, please let me know the link, and I can check on the status for you.

It looks like you are trying to negotiate this on your own. Having a realtor represent you will help in many ways to go through the entire process of buying. If you want to find out more about the transaction process, I will be happy to educate you on it. When you are represented as a buyer, it does not cost you anything for the representation. There are however, various things you need to be aware of during the transaction that a realtor can guide you through.

If you are not already working with someone else, please do give me a call or email and I will be very happy to help.

Persis
713-294-7747
persis.realtor@gmail.com
0 votes
Daniel DeMit…, Agent, Houston, TX
Fri May 3, 2013
Do you have a realtor? If you do, they can run what the comparable homes sold for as well as looking at the tax records to see what they purchased the home for and how much the sellers probably owe on the house.
0 votes
Nancy W. Sua…, Agent, Houston, TX
Fri May 3, 2013
Alejandro,
Thanks for your question. If you are represented by a buyer's agent in Texas, then counsel should come from the agent regarding establishing an offer price.
If you are not represented by a bueyr's agent, I would be happy to assist you in your process of purchasing a property.

If you are buying for investment you will consider a lot of different things.
If you are buying for yourself to live in the home that poses more questions about establishing a market price in the area you are considering.

Please let me know if I can be of assistance by phoning my office or responding via email to this message.

Nancy Suarez, GRI,CHMS
832-415-4753
nwsuarez@garygreene.com
0 votes
Sally Grenier, Agent, Boulder, CO
Fri May 3, 2013
First things first. Have you been prequalified for a mortgage, or would you be paying cash? If you need to get a mortgage, you need to get prequalified first. THEN you need to find a REALTOR to work for you as a Buyer's Agent. He/she can determine "fair market value" for that property -- basically researching what similar homes have been selling for in that area. No one on here can give you an exact answer to your question. You really should be talking to a local pro in your area.

Good luck!
0 votes
Bill Eckler, Agent, Venice, FL
Fri May 3, 2013
Alejandro,

The best way to address your needs is to reach out to a local real estate professional and request that they support your interests. Arriving at reasonable offer amounts that can be defended is one of the many services provided by agents today.

The best part is, since the fee for professional services come from the seller's proceeds, the cost of these services are paid for by the seller.

Please keep in mind that the best offers are one that can be justified......

Good luck,

Bill
0 votes
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