What is a good fair ,first bid on a house listed at 349,000.?

Asked by Ann, 11795 Wed May 15, 2013

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This question was asked from this property: http://www.trulia.com/property/3116988878-201-Fairwinds-Ct-F…

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6
Teresa Hudson, Agent, Lynchburg, VA
Wed May 15, 2013
BEST ANSWER
Ann,
That is a lovely neighborhood, I actually am a member of that Golf Course. There have been several sales within the past year. If you have a buyer's agent they can run the SOLDS for you and help to determine what amenities they had to establish a good estimated value of this home. If you don't have a buyer's agent, give me a ring - 434-841-8096 and I can help you do that. It doesn't cost you a thing to have a buyer's agent and you have someone looking out for your best interest!
Thanks,
Teresa Hudson
0 votes
Don Tepper, Agent, Burke, VA
Wed May 15, 2013
Close to whatever it's worth. That could be $300,000 or $500,000. Don't assume the listing price has any relationship to what the property is worth.

Have your Realtor do a CMA on the property.

Then come up with a strategy. Maybe you want to come in with a very strong first offer. That could be the case in a hot market, or if you absolutely love the house. So you make an offer right about at the house's real market value.

Or maybe it's an OK house, but not your dream one. And maybe it's a slower market. So you might offer somewhat less--maybe 5%-10% below the CMA. Again, ignore the listing price.

But consult with your Realtor to determine: (1) the real value of the property, and (2) a strategy to make an offer on it.

Hope that helps.
1 vote
Alan May, Agent, Evanston, IL
Wed May 15, 2013
the first thing to do, as Ron Thomas alludes to, is to figure out what the real value of the property is.

If the property is really worth $500,000... then full price is a realistic first bid. If the property is really worth $300,000, then 3-10% off the list price ($314,000-$338,530) is too high.

If you're working with a Realtor, ask them to run a market evaluation, and tell you what the realistic value is, and bid based on that.

Good luck.
1 vote
Ron Thomas, Agent, Fresno, CA
Wed May 15, 2013
Assuming that $349,000 is the Fair Market Value is really a ridiculous assumption; but if everyone wants to do that, fine.
1 vote
Jamie Skojec, Agent, Reston, VA
Wed May 15, 2013
Don is right. Trust your agent on our current market. Honestly right now, if you asked my opinion, come in strong if you really want the house. As Do said, have your agent do a CMA and look at theall numbers then decide on your highest and best. Make sure to consider your EMD and all contingencies. Good luck!
0 votes
George Van H…, Agent, Corinth, TX
Wed May 15, 2013
Personally, I think somewhere between 3-10%. Certainly, the more you really want the house the better the initial offer should be. If you have several homes that you could see yourself in then your initial offer could be lower and your negotiating position stronger. In Texas, we are in a sellers market. A lot of new listings get multiple offers, which is a sellers dream. I advise my clients that if they like the home and want to commence negotiations to make the first bid enticing enough, say $339,000 in your situation and more times than not, the seller will agree to that price. All of that said, keep in mind some listings are priced much higher than the market will bring and you shouldn't waste much time with anything other than a fair market offer.
0 votes
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