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Asked by Purple_ppl_eater25, 24360 Thu Oct 28, 2010

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Kevin Olson,…, Agent, Colorado Springs, CO
Thu Oct 28, 2010
Good for you for searching things out this far. With the information given above, it might be in your best interest to get an appraisal done before making an offer. This does sound somewhat strange, it's just that with a range like that with so few comps a realtor (and I am a realtor) might not be able to guide you enough. If the appraisal idea is rejected by the seller, I would just offer what you feel like offering... what you are comfortable with. If you are paying using financing the house is going to have to appraise anyways, but even so you don't want to overpay. It sounds like things are very slow in your area in terms of home sales... try to use that to your advantage. Use that for reasoning with a lower offer.

Good luck,
1 vote
Barbara J Ia…, , Vermillion, SD
Thu Oct 28, 2010
I can't tell you how often I've been asked "how much should I offer". First, I'll give a few comments/opinions regarding some of your information: 1) I do not know if the assessed value is useful information in your area. My experience is that often those figures are fairly useless. 2) If the comps sold between 79 and125K maybe 77K is low based upon the condition of the home that you are considering.3) How long you intend to stay in the home probably matters. If you plan to stay indefinitely the offer might be different than if you'll have to sell in a few years. It may be very difficult to resell this home if it's in a small rural area. Therefore, you might want to offer really low or not at all. If, on the other hand you're staying forever and you want the home because it's exactly what you need, then there is a higher answer.

The rule of thumb, in my opinion, is " how bad do you want it?" and " will you be mad/upset if you don't get it?"

If you feel that there are others that would suit you just as well offer low. Start at your $77000 and see what happens. Maybe they'll counter and you'll end up somewhere near 90% of asking price. If you must have this home and they have not lowered their price in 88 days, maybe you'll have to make the best offer you can so that someone else doesn't get it. When I, personally, have really wanted a home, I have offered full price or full price with seller paying 3-4K of my closing costs.

I would love to know if the homes that sold above 99K in that area were nicer than the one you are asking about. Another consideration is that if you are financing it, it will have to appraise for what you are paying for it.
You can have an accepted offer at one amount and then renegotiate it after the appraisal, if the appraisal comes in low. You can also renegotiate after the inspections. You may not end up with the home but you may also avoid overpaying
0 votes
Pat Mulligan,…, Agent, Chesapeake, VA
Thu Oct 28, 2010
Sounds like you have done your research, Purple. Good job. I would encourage you to get an agent, especially if the house is listed with an agent--- you have no one working in your best interest- but you could- the cost of which is included in the sales price thru the MLS.

If you are going to go it on your own, here is what I would advise: use your research to justify the offering price-- the key to all stats are in the interpretation-- and I would lean into that "22% above tax assessment" . Providing a justification for your offer helps the seller to see the error of their ways, and may avoid resetment and temper tantrums. If the house is listed in the MLS, also include a 3% reduction on price- that is what an agent representing you might expect for their services-- if you are going unrepresented, you might as well get the discount, rather than the list agent getting double commisssion.

If it is a FSBO (for sale by owner), you guys will just hoave to duke it out-- but even then, I encourage hiring a professional to represent you-- besides the Buyer's Agent's presumed skill in negotiating, there are about 4 Million (ok, exaggerating here) things that can go wrong, and where an experience Accredited Buyer Representative can save you money ( and your butt).

Anyway you go-- good luck and congratulations! You are very smart taking advantage of this Buyers' market.

Warmest regards,
0 votes
Stan Reed, Agent, Chantilly, VA
Thu Oct 28, 2010
What does your agent say? If you don't have an agent why not??

Do not use Tax Assessments to set your buying offer or your asking price if a seller. Use the comps your agent shows you. NEVER USE TAX INFO FOR PRICING PLEASE!!

Your initial offer should be what you can afford, along with what the comps tell you about this particular house. Also do you need or want some closing cost help??

Do yourself a great big service and find an agent in your area to work with for this purchase.

Good luck!!

Stan Reed Realtor
Keller Williams Realty
Web Reference:
0 votes
Patrick Thies, Agent, Anytown, IL
Thu Oct 28, 2010
The 5 comps you have is a good starting point. Are the comps sold properties or properties currently on the market? Are the comps similar in location, condition and size? You need to compare this house with the comp houses. Add or subtract value for what the other houses have or don't have. The comps will be a better indicator of value then what the seller is asking for. A buyer will pay what a buyer feels is the value is.

Have a range that you are willing to pay for the property. Start your offer where you feel it is worth to you. The seller will let you know what they think. You can raise your offer if it is within your range. You have to decide what you are willing to pay if you want the property. Good luck
0 votes
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