I want to put a cash offer for property listed for $40,000 in Sacramento California. What should my offer be???

Asked by Tgms2007, Sacramento, CA Tue May 31, 2011

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14
Jamie Collins, Agent, Fair Oaks, CA
Tue May 31, 2011
You should not really care about the listed price. It is the real value that is the most important. In today's market the list price can be a marketing tool. Some properties are priced well below the real market price. just to create a bidding war.

What you need is a lot more information.
Who is the Seller? What is the motivation to sell. If a quick sale is worth something? Are you a investor or are you looking to live in the property? Condition, Location, Market ability, How long has it been marketed.

There is no rule of thumb when it comes to making an offer in today's market. You need the facts.

Let me know if you would like help. I could either help you or refer you to someone who can.

Jamie Collins
916-257-3779
1 vote
Paula Swayne, Agent, Sacramento, CA
Tue May 31, 2011
You should talk with your Realtor. They can provide comparables that will give you a good idea of the value of the home. If the home is a foreclosure, cash is an important factor in their decision. However, if it is a conventional sale, the seller ultimately ends up with cash either way, so it isn't as influencial. Other things to take into account is if you are competing (then cash is more a draw than, say an FHA offer) and how long it has been on the market. The longer it is on the market, the more apt the seller is to take a lower offer. Your Realtor can fill you in on all of this and other important factors you should be aware of. Good luck!
Web Reference:  http://www.PaulaSwayne.com
1 vote
A, , Scottsdale, AZ
Tue Jun 7, 2011
Check the CMA & stick with your budget making sure that you are offering your highest and best. Good luck
0 votes
Gerard Carney, Agent, Spring Hill, FL
Mon Jun 6, 2011
$40,000 is the correct answer since this is what the seller has asked for. Play your hand carefully on this one if you plan on trying to negotiate a better sale price! more than 10% would be insulting to the seller, so I would say to offer like $36,000 to $37,500. If you get a counter offer that is still better than $40,000, take it! You might want to ask you Realtor to do a CMA on this property to be sure it is worth the $40,000, if it is less in Value than the Asking, then offer the CMA price, it they refuse, walk away and look for a better property!
0 votes
Sandra Murray…, Agent, Sacramento, CA
Wed Jun 1, 2011
You have gotten some great answers and they are all correct. It DEPENDs on many factors. Get the market comparison from you agent, have your agent research the activity on the home...are there already offers? How motivated are you to have this home? Once you have all this information you will be able to make the right decision for yourself.
0 votes
Teri Andrews…, Agent, Auburn, CA
Tue May 31, 2011
Your offer should be the best one you can make given the property condition, location, your desired use (are you or a family member going to live in it or is it an investment? , if an investment you need to figure out your return and estimated income for the property based on the local rental market) Putting in a lower than listed offer on a newly listed property usually doesn't work, now if the property has been on market a long time, you may have a case, but you would also want to ask yourself why has no one else has bought it? Sacramento has some astonishing low priced properties but make sure it adds up to a good deal for you and your needs. The good ones go quick and there is a alot of flippers in Sac buying off the courthouse steps.

As an aside, according to MetroList there are currently 62 active single family listings in the city of Sacramento under $50,000. and that is not including the short sale contingents. 158 properties sold in that price range since the beginning of the year.
0 votes
Jim Walker, Agent, Carmichael, CA
Tue May 31, 2011
Hi David Cooper,
Yes there are some ugly mangy dog major fixers at that price, also some vacant lots in bad areas, and condos, condos, condos.
0 votes
David Cooper, Agent, Los Angeles, CA
Tue May 31, 2011
What kind of property could possibly be listed for $40,000 in Sacremento? There has to some major repairs needed or it is really a wierd design. More info is needed to give a realistic answer


David Cooper! Las Vegas Bank Owned Foreclosure Investor
Save 20% and more.. For Freee Daily List
email: davidcooper@lasvegaswinner.org or Call +1-7024997037
0 votes
John Juarez, Agent, Fremont, CA
Tue May 31, 2011
@paula

“Confrontational” is a strong word. Perhaps that overstated the point that I was making.

Buyers and sellers have different goals (yes, there are almost always exceptions to every statement). Buyers want to net the most that they can from the sale of their house. Sellers want to pay the least amount possible for that same house. In that respect, the selling/buying process is adversarial, but not necessarily confrontational. We do not need to be confrontational to serve our clients needs. In the end, the seller and buyer for any given house will reach an agreement on price – and other pertinent issues – and the sale will take place. No agreement, no sale.

Can one agent represent both buyer and seller? Yes. It is legal. It is common. I have done it.

Do I believe that, in most cases, a buyer and seller are better represented by individual Realtors who are looking after the best interests of their respective clients? Yes, I do.
0 votes
Jim Walker, Agent, Carmichael, CA
Tue May 31, 2011
I recommend that you ask your agent to use the CAR form that is appropriate for the type of property in question.
If it is vacant land use a vacant land contract, if it is a house use a residential contract. The offer should be dated, initialed and signed. You should make your offer price, earnest money, and days to close prominent on the first page.
0 votes
Paula Swayne, Agent, Sacramento, CA
Tue May 31, 2011
Hi Again!
I just wanted to comment on John's question. I don't believe the purchase of a property has to be confrontational. Everyone has the same goal...to sell and purchase a property. While there are exceptions, you will find that most Realtors only want to accomplish a fair agreement that everyone is satisfied with. Some brokerages will not allow their agents to be dual agents (representing both buyer and seller). Others will and can accomplish everyone's goals very nicely and fairly. Most buyers do not get a financial benefit from using the listing agent, as any discounts are usually in favor of the seller. However, if you are comfortable with the listing agent, there is no reason you shouldn't at least explore the possibility of using them.
Web Reference:  http://www.PaulaSwayne.com
0 votes
Lisa Jonsson, Agent, Walnut Creek, CA
Tue May 31, 2011
First you should have your Realtor pull the comparable sales in the area so you get an idea of what the home is worth and have your agent find out if there are any other offers currently on the table for that property. Homes under $100,000 are often purchased by cash buyers, so there may be more than one cash offer already submitted that you would be competing with. This would be important to know. Your agent can also let you know how long the home has been sitting on the market, as this may give you a clue as to how competitive your offer must be.
Web Reference:  http://www.lisajonsson.com
0 votes
Maruja L. Gil, Agent, Coral Gables, FL
Tue May 31, 2011
It depends on the condition of the property, but if it is in good condition and the regular market price is above. I will take no chances and submit a full offer. I would not negotiate more than $5K in that price range you can not negotiate that much specially if its and REO or Short sale property. If you are dealing with the owner you can take more chances. Good Luck
0 votes
Ron Thomas, Agent, Fresno, CA
Tue May 31, 2011
You need more information: May I suggest a great Realtor: Cathleen Watson, cell 916-541-4662 or e-mail cwatson@norcalgold.com
She is all aces and you will like her.
She can do Comp's and help you subit an offer.
0 votes
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