How much will i offer of this house?

Question

i am buying a house and found one that i like the price is $139,900...how much should i offer with this house...it's just new in the market about 2 weeks now...

Answer 1

Find out how much other ones sold for close by.  It also depends on how motivated the seller is.  The seller probably expects offers lower than the asking price.  That's the American way.  Try 10-15% lower, but be prepared for a counter offer.  If the house will appraise and you really like it, go for it.

Answer 2

Contact a real estate agent to represent you as a buyer (do not hire the seller's agent - that sets up a conflict of interest that favors the seller). The agent has access to the MLS, which includes confidential information you don't have access to, including links to the tax and mortgage history (what the person owes). The agent can also do an estimated appraisal using comps in the area to find out what similar houses are going for.

Then, if the house is being offered for less than the apraisal value, you should probably offer the full price. If the appraisal is about the same as the listing price, maybe offer about 5% less. And, if the appraisal is significantly more than the listing price, a low-ball offer might insult the seller to where they wouldn't even respond to your offer. Just offer the list price at the lowest.

Answer 3

Here's what you do:

Find a Realtor to represent you. Ask the Realtor to perform a CMA (competitive market analysis) to determine the value of the house. Despite another answer here, a CMA is not an appraisal. It uses the same basic data, and a Realtor will do it for free. An appraisal is more formal, is conducted by a licensed appraiser, and typically costs $300-$500. At this point, a good CMA will be sufficient.

So now you'll have two numbers: the listing price of $139,900 and the CMA. You will pay no more than the lower of the two. Note: Pay no more than...not offer no more than.

So, you take the lowest number. Let's say the CMA suggests a price of $135,000. There are a bunch of different strategies. Here, quickly, are three:

You like the house and are willing to pay $135,000. You put in a strong offer at $135,000. Include the comps. Include a strong earnest money deposit. Present it as a "best and final" offer--good for a limited period of time. It's "take it or leave it." Now, the sellers might counter, but if your agent makes it clear that it's "take it or leave it," they may well take it.

You kind of like the house, but are willing to negotiate to come out near $135,000. In America, one (not particularly good) strategy is to "split the difference. So you offer around $130,000. After negotiations, you'll end up somewhere near $135,000.

Or you want a bargain. You make an offer below $130,000. And ask for lots of little things, trade off the little things for price reductions.

Oh, and don't worry about "insulting the seller." Let the seller be insulted by people who viewed the property and didn't make an offer. Besides, you don't know what might or might not insult the seller. Make an offer that works for you, and stick with your numbers.

Again, a Realtor representing you can help greatly.

Good luck.