Is offering $135k on a $150k house insulting in Purvis Mississippi?

Asked by Dave, Mississippi Wed Jul 16, 2008

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grant, Home Buyer, Mobile, AL
Fri Nov 11, 2011
I am another buyer with a situation like this. I am interested in a new home in a small town. It was built in early 2010 and has been on the market over a year. The small town has tons of homes for sale, with few buyers. The home I like is only $4,000 over what I am pre-approved for. But the builder of this home is adamant that he won't come down $4,000!!! So, I am hoping that you have better luck getting your seller to come down $15,000 than I did getting mine to come down $4,000!!
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Lee Thomas, , Picayune, MS
Fri Apr 22, 2011
That depends on so many factors. Just because the offer is 10 percent lower, and because it is in Purvis, MS does not mean the seller would be insulted. The answer to your question depends on so many variables. What is your real estate agent's opinion? The seller already has an agent. Get yourself one by signing a buyer's agency agreement, then you have your own agent who is looking out for your interests and who can help you with all the little facets and details involved in the negotiations.
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Don Tepper, Agent, Burke, VA
Thu Jul 17, 2008
Don't worry about insulting the seller.

First, determine the real value of the property. Second, if you've been pre-approved or pre-qualified, take that number. Third, determine how much you can comfortably afford to spend, which may well be less than your pre-approved/pre-qualified amount.

Take the lowest of those three numbers (value, pre-qualification amount, affordability amount). That's the most--the MOST--you should spend for the property.

Notice we haven't even discussed the listed price of the house? That's because it has nothing to do with the house's value, what you're qualified for, or what you can comfortably spend.

Now you can look at the listing price. Take the listing price and the number you came up with above as the most you can spend. Take the lower of those two numbers. That's your new maximum limit. If the owner's asking for less than the value, less than you're pre-qualified for, and less than you're comfortable spending, then you lower your offer to the listing price.

But never, ever, raise your offer if your own low number (value, pre-qualification, comfort level) is below the listing price.

And these calculations apply whether you're in Purvis, Mississippi or San Francisco.

Do not worry about insulting a seller. Worry about value and your ability to afford the property.

Good luck.
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Robert Madrid, , New York, NY
Thu Jul 17, 2008
Not at all. The owner has three options:
1) Decline with no counter offer
2) Counter offer
3) Accept

As Ms.Starnes pointed out, see how long the property has been on the market. If the property has been on the market an abnormal period of time, then this might justify the drop in the offering price. Even if the owner does not accept the price, might as well test the waters and attempt and see if he comes with a counteroffer. Then work around the counter to you reach a mutually beneficial agreement. If you feel as if the property is not worthwhile at this price bracket (after searching the true comparables), then move on.
But at least attempt.

Remember, as you are submitting an offer, you never can tell who is right behind you with a better offer and better qualifications ( Even the all cash types). Even when an offer is accepted, the owner still could accept another offer. Words and not binding. Fully executed contacts are. The name of the game is to have the attorney, mortgage banker all in your pocket, so when you are ready to pull the trigger, you can get to the contract ASAP. Best wishes with your endeavors.
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Pat Starnes, Agent, Flowood, MS
Thu Jul 17, 2008
Your initial offering of $135,000 may not be insulting, but I would certainly ask my Realtor the number of days the home has been on the market before presenting the offer. No-one wants to overpay, and everyone wants to feel like they "won" or got a good deal.

The best advice is this: If you really want the house, make your offer but be prepared to raise your offer. If you are willing to walk away, you haven't lost anything in trying.
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Patti Herrin…, , Madison, Brandon & Jackson MS
Wed Jul 16, 2008
not in today's market. You do run the risk of offending the seller. Do you have a realtor? If so you need to get her to do a current market evaluation of the homes that have sold in this area. Submit that with you offer. If the seller is upset at your offer then tell him to counter back at his best price. You miss every shot you ever took. Who knows he might be willing to take you offer. you never know what someone's circumstances are.
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