How much should I offer for this new townhouse?

Question

So I found a townhouse I like in a large development of townhouses and single family homes outside of Cleveland OH. The development is two years old but only one building, four units have been built on the townhouse side. Three have sold, one remains. The asking price on the remaining unit is $154,x*x. However the model unit next door recently sold for $132,000. And the other two units sold for 170000+. The neighborhood is nice and well established. There is a clubhouse and pool. The single family side is selling well.

Also when I first saw that house the builders agent offered a price of 140,000 offered to pay closing costs and to buy down my int rate three points. and I wasnt even negotiating at the time. Im not sure how much to offer, any suggestions?? THANKS

also here are pics..

http://img170.imageshack.us/my.php?image=northpointejo7.jpg

Answer 1

You could try $135 plus closing and the buydown.  Just be aware that they will turn all the amenities you see into a home owners association which will be responsible for maintenance utilities etc.  If they don't finish the project, the existing units will be responsible because there are less units to spread the cost over.  Check the HOA docs

Answer 2

That's a beautiful place.  Well let's see what they offered when you weren't even looking.  140,000.  Closing costs will be about 9000 on that loan if they are including insurance and taxes.  About 4000 - 5000 if they aren't.  Let's take 5000 for now.  Also they are willing to buy down your rate by 3%.  That's another 8000 or so.  

So they offered you 140,000 with another 13,000 cash back at closing basically.  This is telling me they need these places to sell and quick.  I don't know your fianancial situation so I don't know how much you have to put down and so forth.  This means I'm just guessing but here's my opinion.

Initially, I would say why don't you offer them $130,000 plus all the closing costs benefits talked about above.  Maybe you can buy it for the same amount the model sold for and then you still have the closing costs benefits.  Be prepared for them to counter offer.  They will, so go lower then the number you think you want to pay.

It's a beautiful home and it really looks like a great value.

Good Luck!!  Hope you get it.

Answer 3

buying a builder's townhouse is more straightforward than buying a previously owned townhouse.   The builder knows exactly what she needs to sell it for to make a profit.  If there is no profit left, the builder knows how much she needs to pay off loans and hit the road with good credit still intact.  So i have usually had to accept the builder's agent's offer if i want to buy it today.  Or you can sit back and wait for 30 days when the builder has to make another mortgage payment.  Then you will get a call with the builders' "new" bottom line.  If someone else buys it in the 30 days, you lost.  If no one buys it , you save another $2,000-$5,000.  It's a gambler's game.

Answer 4

That's a beautiful house.  I would offer 140 + closing costs + int rate + you get to keep all the furniture.