What should i offer for this house?

Question

Here is the info i have. People are asking 190k (short sale) for this house. It sold in 2003 for 256k. It also sold in 1998 for 133,000. Recent comps from the last month to 2 months, they are saying the house is worth 225k on the low end and 280k on the high end. House has only been on market for a few days, and a house close by with a similar price has had 7 offers in a short time and another house that was same size and cost a little bit more sold first week on market. So what should i offer? Higher than asking price? Remember, the price is based on a short sale.

Answer 1

Offer them what you feel the house is worth. Did they get an appraisal? I'm sure they will be getting other offers since they are asking less then the area comps - Maybe you should go $199k to be safe. Also - if you tell them you could settle in 30 days theat may seal the deal vs someone who needs 60. Good luck

Answer 2

You need to use tax records for comps. Since you did it correctly I won't say more then that.



First, you need to find out if the short sale has even been approved. I know, and you probably do to, that the seller is supposed to clear it with the bank first, but in reality many people are really ignorant and do not do this. What this means to you is that you can offer full asking price and still not get the house. The seller is no longer involved in the process.



If the bank approved 190k you can buy it for that. But, keep in mind that even $1 less has to go though the approval process all over again and presently this is taking most banks 3 months. Anyone telling you otherwise is not active in the market right now.



Being a short sale has nothing to do with previous sales prices. The "short" is simply short on what is owed. Some people were a**holes and borrowed against their houses to buy cars, etc, and owe far more on it then it was ever worth.

Answer 3

You need to find out what the current owner owes on the property. The bank does not want the home back, but they also do not want to lose money. I assume that the $109 they are asking will payoff the lein. I am guessing that, assuming your right about the comps, that you probably should go in at full asking price if a similar home has had 7 offers. You need to find out which of those 7 offers was accepted and for how much. Is is also a foreclosure, or pre-foreclosure?

Good Luck.

Answer 4

In real estate there are two very old expressions:

1] You [the Buyer] names the price.

They [the Seller] names the terms.



You [the Buyer] names the terms.

They [the Seller] names the price.



Somewhere in the middle there might be an agreement on price and terms.



2] A property - any property - is ONLY worth what the Buyer is willing to pay for it AND what the Seller is willing to sell it for - not one dollar more or less!



AND, when financing is involved, what the lender will appraise the property for and lend money for the mortgage.



THE ONLY way you're going to find out what the Seller's bottom line is, is to make a written offer on the property.



By the way: DON’T EVEN TRY naming the price AND the terms. it’s a to9tal waste of time and very frustrating and aggravating.



Thanks for asking your Q! I enjoyed answering it!



VTY,

Ron Berue

Yes, that is my real last name!

Answer 5

Since there is so much activity on a similar house, I would be either darn close to asking price or slightly higher if you really like the house.



A word of caution, lenders are taking their time with their short sales and foreclosures, this is a process that needs your patience if you want a deal.

Answer 6

why is the asking price so low if the low end value is 225k and similar houses in the area sold so quickly? what's wrong with the house?



honestly, i dont know that i would be buying a house right now. i would wait for the market to bottom out a bit more.



if it was me, I would offer 175k with the agreement that they immediately accept the offer and agree to immediate lock you in as the buyer for that price. when they reject it, I would go to 180k - 182k . if they reject that, i would go a little higher.



you can keep nichel and diming offers.

Answer 7

Sounds like a good deal to me. I would want to know why it is a short sale, but, I would go in at the asking price and let them know that you are ready to move in NOW and the money is waiting for them. They will go with the easiest offer rather than the best is my guess.



Good Luck

Answer 8

If you really want the house I would go in at asking. If it is rejected you can offer higher but why offer higher if you don't have to.

Answer 9

if you know the house is worth 255 and they are asking 190 its a no brainer give them what asking or wait till bank forecloses and steal it from them