I am looking at a home being sold as an Estate Sale. It's listed at 119.5k. Last updated 20 yrs ago. Would $95k be considered a low ball offer?

Asked by rtrago, 43231 Mon Nov 11, 2013

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21
Josh Perkins, Agent, Castle Rock, CO
Thu Feb 13, 2014
In real estate, it matters less what the seller is ASKING for, and more what the property is actually WORTH. Don't be afraid to make what would be considered by some to be a low ball offer if that is the value that you think the property is actually worth. The worst thing that can happen is that the seller will simply say no, and maybe be a little offended. I promise you this, the Seller will survive, even if he gets a little taken aback by your offer.
1 vote
Scott Newman, Agent, Chicago, IL
Wed Mar 12, 2014
List price is irrelevant- the only thing that matters is what the home is worth. If it's worth $80K and you offered $95K then you'd be significantly overpaying.
0 votes
Gabriel Mart…, Agent, Elmhurst, IL
Thu Feb 13, 2014
My Advice is to always consult with a knowledgeable Realtor and ask for he/she to provide you with a detailed Buyer's Comparative Market Analysis (CMA) of similar homes within a reasonable radius of that that specific. Items such as local market conditions, overall physical conditions of the Home, and the Seller's need/urgency level to sell will dictate if that is a low ball offer or not. The Realtor's advice and CMA will help you determine accordingly.
0 votes
Kevin Bigone…, Agent, Chicago, IL
Mon Jan 20, 2014
It really all depends on the market for the area. If similar properties are going for around 120 then yes, in this market if its priced right it is selling withing the first two weeks
0 votes
Bradley Neum…, Mortgage Broker Or Lender, Franklin, TN
Fri Nov 15, 2013
Offer lower if you like. Insulting a seller is a myth in my opinion. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states.

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0 votes
sw3886, , 60645
Fri Nov 15, 2013
My first bit of advice would be that you have to be willing to lose this home if you offer anything lower than full price. Also depends if there is competition to buy which means you might have to go over asking price in certain situations. I tell my buyers offer whatever you'd like if you are willing to lose it. Please know that an estate sale can be a slipperty slope.........the heirs selling the home can have very fond memories and keep in mind this is the last shred of their loved ones so even though it is somewhat found money for the seller it is a very emotional time for the family. Second bit of advice is the seller is looking for an offer in the range which means you have to be at 6 figures or $100,000 some thousand in this case............psychologically this is usually where a seller is at. You want to keep negotiations open and $95,000 might get you a flat out rejection. Hope this helps. Good luck in your home search.
0 votes
Dick Post, Agent, ORLAND PARK, IL
Tue Nov 12, 2013
Hi There,

Are you working with a Realtor? If so, have him or her research the area where the home is located, and pull up a list of similar homes that are currently on the market or have sold with in the last 6-12 months. Of course, the condition of the home will figure into your offering price, but comparables is a good place to start.
0 votes
Santiago Ken…, Agent, Chicago, IL
Tue Nov 12, 2013
A good offer would be $75,000 in that case ....
0 votes
Bill J Delig…, Agent, Naperville, IL
Tue Nov 12, 2013
It all depends on the neighborhood, condition of the home and sellers willingness to sell. You have a Realtor - follow his/her advice. If you really want the property then offer a higher initial price so that you can improve your chances.
0 votes
Pamela Peter…, Agent, Lisle, IL
Mon Nov 11, 2013
Ask your agent to get the opinion of a senior agent in the office. It's a slippery slope and without more information it's difficult.

Pamela Peterson
Broker Associate
RE/MAX Action (630)803-9554
email: pamelapeterson7043@yahoo.com
0 votes
Jorge Vega, Agent, Chicago, IL
Mon Nov 11, 2013
Hello,

We will need more information in order to give you detailed advice. Your best bet is to state your case. Get a contractors bid and present it with your offer. Show them that you are prepared and willing to negotiate the terms. Depending on the market conditions in the area you might have a chance. Good luck!
0 votes
Matt Laricy, Agent, Chicago, IL
Mon Nov 11, 2013
Good question to ask your broker. We would need more info to make a accurate comment.
0 votes
Jacqueline S…, Agent, Chicago, IL
Mon Nov 11, 2013
Without knowing where the property is located, what size and style and how many bathrooms/room breakdown, it would be impossible to say. You zip code is in Indiana, is the property in Indiana too?
0 votes
Stephanie Sc…, Agent, Chicago, IL
Mon Nov 11, 2013
A real estate investment will potentially be the biggest investment of your life and you need to feel secure with your representation to protect yourself and your Realtor after your working relationship ends.

What's the worst that could happen with this offer? The seller declines your offer or counters. You want this property, don't you? Timing is everything and if you don't trust your agent and put off placing an offer to open the conversation between you and the seller then you might just lose your chance to purchase this property. Offers are made to be negotiated!
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Mon Nov 11, 2013
I am glad you are using a realtor, but you need to trust her. If she has shown you the comparables, you need to base on that and what you want to pay. Then let sellers look.
0 votes
Luke Wojcik, Agent, Chicago, IL
Mon Nov 11, 2013
It really depends on what the comps for like properties say in the area. Please also notice the number of days the property has been on the market. Its a good indication, especially if this market, if something is listed too high or not. Dont worry about offending the sellers because most likely they will counter your offer so be prepared to go up. If you are still concerned have your agent call the other agent and discuss before hand
0 votes
Kelvin Waits, Agent, Chicago, IL
Mon Nov 11, 2013
My advice would be to obtain advice from a Realtor. There are several experienced Realtors on Trulia that I am sure will properly answer your concerns. It sounds like you are going to have to make some repairs to bring the home up to date. If you need advice on how a 203k rehab can help you update this home please feel free to contact me.

I hope all goes well.

Kelvin Waits
VP of Mortgage Lending
Guaranteed Rate
630 925-7854
0 votes
Erika Carter, Agent, Orland Park, IL
Mon Nov 11, 2013
Hi there! Has your realtor performed a CMA to determine Neighborhood property values?
0 votes
Dirk Gould, Agent, Chicago, IL
Mon Nov 11, 2013
We can't give you an answer. We need the property address. Then we would run a comparative market analysis to determine the current value, and form our offer strategy using that information. If your realtor didn't do this, you should probably look to work with someone else.
0 votes
Philip Sencer, Agent, Chicago, IL
Mon Nov 11, 2013
You need to have your agent pull up comparables to see what similar property has been selling for in that area. Even if there are not any recent sold estate sales or older condition property, if 'average condition property is selling for say 130K then maybe 100-110K might be reasonable. If 'average condition property is selling for 100K then 75K might be more reasonable.
0 votes
rtrago, Home Buyer, 43231
Mon Nov 11, 2013
We have a realtor but she is new. The house needs cosmetic updates, kitchen is from the late 70's early 80"s, wall paper and carpet needs removed. We have not had an inspection yet, but my realtor wants to offer 95k and go up to 100k. I am wanting a second opinion on if that is too low? I have heard that the heirs usually want the property off their hands, especially near the holidays and end of the year. I just want to make sure we dont offend the sellers by offering 25K less. Is it typical for estate sales to go for 25K less? Is there more bargaining power because of the fact that it is an estate sale?
0 votes
If it's on the market and it hasn't sold in 30 days then its overpriced or under exposed. It's in the MLS so I am going to assume the former. There is nothing wrong with starting at 95k and waiting for them to counter you. It's the dead of winter. Either they sell it to you or they wait until March to sell it so I don't see any issues starting the negotiation off. Best of luck!

Mark
Flag Mon Nov 11, 2013
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