Questions to anyone who has experience in real estate.?

Question

My husband and I have been looking at properties to buy for several months. Approx 6 mths. We finally found a property that is a upscale ranch. Wood flooring, open and split floor plan. Dinning room, Den, master bathroom with walkin closets, soaking tub, stand up shower and a mud room off of the garage. Unfinished basement, 2300 sq/ft. The house has set empty for two years. Actually the auditors website says it was built in 06. The house originally came on the market last year for 297.000.00, the contractor took it off market during the fall/winter months. it has now came back on the market for 257,000.00. The market quiet frankly sucks in our area. There are 300k +/- houses being built on the same street without luck in sale. My question to anyone that can answer this question. Do you think that the builder would take an offer of 225k? Every month this house sits empty the contractor is loosing money. I can not help but wonder if he would be anxious enough to take the offer?

Answer 1

Just make him an offer.  Do it in writing with a sales contract and give him about 48-hours to accept.  A couple of things will make him accept a lower offer.

1.  The offer is in writing and he knows it is serious.

2.  Give him what he needs to show you have financing lined-up.  If you are financing andnot paying cash.  Have a pre-approved letter that you give him with teh sales contract.  Then he knows he has a legitimate sale and will more then likely accept a lower offer.

3.  If you can financially put a deposit down.  The larger the better.

Answer 2

I say there is a good possibility he will accept any reasonable offer. It is a buyers market. Houses are not selling even though the interest rates are low. I know some builders are even taking a loss on their new homes just to sell them. I cannot imagine why he would have taken it off the market no matter what time of year if he really needs to sell it.

If he got a construction loan to build the house, he is probably having to continue to pay the interest on his loan. He may have taken if off the market if they have threatened to foreclose on it.

If you are willing to purchase the house without any contingencies, he should be happy to entertain almost any price. Contingency means that if you want to purchase this house without selling another piece of property, he would be happy to accept a decent offer. But, you will never know until you write up a contract.

Even if your offer what contingent upon your having to sell other property, he could (give you the first right of refusal.) This simply means that he has accepted your contract and if someone else comes along and wants to purchase the property (without contingencies) you will have so many days to determine if you want to purchase the property and remove the contingency clause.