Misty, Home Buyer in San Antonio, TX

Would it be a complete insult to offer $130,000 for this house?

Asked by Misty, San Antonio, TX Fri Oct 31, 2008

The house was listed at $172,000 originally FSBO and is now being offered at $159,900. It has been on the market for quite some time and has seen the price come down over the months. I have been told that this person has a floating rate and is paying a high interest rate on the loan. We've seen the house and the realtor mentioned that the owner is from Laredo and needs to get rid of the house ASAP. She said that he'd been getting extensions from the bank as the maturity date for the type of loan he has expired a couple of times already. She was certain that it would go into forclosure since the man doesnt have the money to pay down the principle by 5% as the bank requested (in order to get another 6 month extension). According to the realtor the house was aquired for about $115,000 in 2007, at which point the owner was paying 10.25% and now is paying 8% interest. The outstanding balance on the loan is $102,000. Any advice?

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Danny T Thom…, , Austin, TX
Fri Oct 31, 2008
Good morning:

In a Buyer's Market, which we are definitely in, it is common for Buyers to offer what a Seller may cansider a low-ball, or insulting offer. In my opinion, that shouldn't stop a Buyer from making the offer. If you are truly willing to buy the home for a price, and if I were representing you, I would say make the offer and at least take the chance. Obviously, the Seller will have to agree to sell it for your price...
With that said, when my Buyer likes a home, I perform due diligence and find out as much about the home and the Sellers as possible.. it seems you did some digging yourself. I would also recommend a market analysis to be sure it is worth even what you want to offer. If the house really was bought for $115K in 2007, I am not sure how there was any appreciation since then. If we assume the current owner got a heck of a deal in 07, then it is conceivable that it is worth 130K today... I just think you need representation and some more research should be done.

All that said, I am a professional Realtor and I have assisted over 700 Buyers and Sellers in the last 14 years. I would be happy to help you if you do not already have representation. But I truly believe you should have a Realtor you can trust to help you take a closer look at this deal, and help you make the best decision.

I do wish you the best, and hope to hear from you! 210-979-0111, DannyT@KW.com
Web Reference:  http://IsellSanAntonio.com
1 vote
Josh M. Boggs, Agent, San Antonio, TX
Fri Oct 31, 2008
Hey there Misty,

Ok, when you keep mentioning Realtor in your story, is this the listing agent or your own Buyer's Realtor? It seems just a tad odd of a story to me, but none the less... absolutely put that offer in! If it's been sitting on the market for a LONG time and you definitely know all of the background music to be true, then I'd say you're in a good position from what I see so far.

It's another thing however when you the buyer loves a home that has only been on the market for 1 week and it's absolutely perfect and priced right, then STILL they insist on giving a low-ball offer.. that's when I would just ask you seriously if you are here to buy a house or just see how many offers you can put in for a shot at the Guinness Book ? :)

If you need any help... you've got plenty of great Realtors below that answered your questions, so just take your pick. :)

God Bless,
Web Reference:  http://www.eXposedHomes.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Fri Oct 31, 2008
If the loan was $115,000 in 2007 where they making extra payments to get it down to $102,000? That doesn't really make sense.

However if all the numbers you give are good numbers it sounds like your offer might be appropriate. That is if the house is worth what you are planning to bid. What's the fair market value?
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Oct 31, 2008
You have done your homework, If they need to get rid of it that bad then your offer is fair, You never know unless you present it in writing. As well you should get a buyer broker who can guide you through the buying process, you should be able to negotiate it so you do not have to pay anything out of pocket as they get paid by the listing agent at closing. good luck with your purchase.
Web Reference:  http://www.ScottSellsNH.com
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Barbara Blac…, , Spring Branch, TX
Fri Oct 31, 2008
You are extremely well informed on the circumstances surrounding this seller's situation. If your info is correct on the balance of the home, the seller could accept an offer of $130k without having to come out of pocket with cash. Would it be an insult? Some sellers would perceive an offer like that an insult. However, I always council both buyers and sellers to keep in mind that these are business transactions. You cannot let your egos and your personal feelings get in the way. This particular seller might reject your offer or counter it. It is in his or hers best interest to try to negotiate this thru to a successful conclusion. As a buyer, I would not worry about insulting a seller. If you feel that your offer is fair and you are an able and willing buyer, then put an offer on the table and see if the seller is receptive.
0 votes
Matt Stiglia…, Agent, San Antonio, TX
Fri Oct 31, 2008

You mention a Realtor in the equation.

My question to you is this - is this you Realtor advising you or the owners?

If its your Realtor, have them run the comps in the area, see what fair market value of a home of comparable nature is in that area and go from there. They should advise you on the correct path to take.

If its the owner's Realtor then I truly hope that the seller has told them to give you all that information.

The key to any offer is to make it strong and sound all around. Protecting you and getting the best offer written should be you agent's primary goal. An offer has many variables and being able to see the "big picture" of the offer is important, so that any objections can be countered and negotiations can work in your favor.

If you's like to speak further about this and are not represented, I'd be more than happy to take a look at the "big picture" and prepare an offer that will net you the best possible outcome.

Good luck!

Web Reference:  http://www.mattstigliano.com
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