House buying ?

[87TR_WE4$$$]

Hi guys anyone help me with this,

I'm looking at a house that been on the market for a while. The seller is asking $110k even though its only assessed for $72k. I am only approved for $80k to $90k and I really want this house.

1. Is it common practice for sellers to ask for alot more than they are actually looking to get?

2. Why the $30k over assessed value asking price?

3. How much should I offer to start?
Do you think They will come down the extra $20k to $30k.

Thank you for any info in advance!

 

[GN One Day...]

I'm seeing some inflated prices too. More than normal, but maybe that's because I'm looking for myself now.
I don't know about your area, but here, it is a seller's market and houses aren't listed for more than a few weeks. Way more buyers than sellers. They can afford the time to start higher up and test the waters.

Going by the tax assessor won't be right. Here, they can be low on the current value by 25% or more. Even the sq ft figures they have can be wrong.

I think you should be working with a realtor--your own, not one working for the seller--if you aren't already. A good realtor will run a market analysis on the house, similar to what an appraiser does, and will make adjustments for any issues to help you come up with a good figure to offer, at least as a starting point. Most are boated up a good bit on price. Check MLS for that owner's purchase to see what they paid for it. They may owe too much on the house to be able to sell for a reasonable amount. Upside down, like in a car. Think about this too: they'll probably pay about $1000 in closing costs, realtor commission, some repairs, payoff the mortgage and then they have a profit. If it is for sale by owner, you should see what most go for and subtract 3-6% since they aren't paying a realtor, or will only pay 1/2 commission to yours. Like buying a car, first decide what YOU are willing to pay and stick to that. Be willing to walk away. I walked away from one the other day that is KILLING ME, but it had issues we couldn't get over. Perfect house too!

Get a realtor involved, you really need access to information that will be hard or impossible for you to do on your own. If your realtor isn't doing the job, find another.

Good luck!

 

[87TR_WE4$$$]

Where should I be able to find a realtor for myself? How about through my lending mortgage company?

Thanks

 

[buickman69]

Originally posted by 87TR_WE4$$$
Where should I be able to find a realtor for myself? How about through my lending mortgage company?

Thanks

Get on the net and find (in your area) the #1 real estate company. One with 1-stop shoping.

For instance in TN and the mid-south it's Crye-Leike, Realtors.
We have our on bank, title company, insurance company, home services, auction divison, comercial property managment and sales, etc, etc, etc. We also sold 3.2 BILLION in residental properties last year! Sorry, I can't help you in NY but you definiety need a Realtor.

Is this house listed with a Realtor??? If so , the worst thing you can do is go straight to the listing agent, he works for the seller. Using the listing agent is like using your wifes divorce attorney

It doesn't cost you ANYTHING to have a Realtor represent you cause the seller pays his commission. If it's a FSBO (for sale by owner) then have your agent contact him and see if he'll pay him for bringing a buyer. If not, then work out a fee with him, it'll pay for it self in the long run.

BE SURE YOU GET A HOME INSPECTION AND A MORTGAGE LOAN SURVEY!

Watch those mortgage companies and all their junk fees.

Good luck.

 

[Grumpy]

just make an offer on it....owner might be tired of waiting to sell ... to me if the house has been for sale for a long time its overpriced..

 

[Lee_Burough]

Grumpy is right! buickman69 is too.

Get a real estate agent to act in your behalf. In Colorado and Texas they are called "exclusive agents." Going to a seller with an agent will protect your interests.

Its easy to get emotional about a particular house. Resist emotional committment to a house while you're negotiating for its purchase. Be sure of the resale value before you make an offer, and do not pay more than it is actually worth. Move on if the offer is not accepted.

Its a hard thing to move on after you've seen the "perfect house." If you buy more house than you can afford, or pay too much for a house, you create problems down the road that can snowball on you.

A good job of shopping for your mortgage will pay huge dividends down the road.

Remember that the market is changing every day, so, another "perfect" property could come available tomorrow.

Like Grumpy and buickman69 said, get an exclusive agent to provide a market analysis, then, make an offer. Move on if its not accepted.

 

[2quiktocare]

Selling realtors are telling people to price things high because with the way low interest rates, the payments will still be lower than they would of been 3 years ago with the lower price. Stick to your guns. The only people to benefit from this game is the sellers and the selling agent. When rates start to increase again, and they will, your house will deflate in value. You may then have a low payment, but the true value of your property will be up side down. If the house has been for sale for some time, the owners will be anxious. Whenever you buy a house, the first thing to leave home is your emotions. Always be prepared to walk away from any deal if it isn't a truly good deal for you.

 

[HRpartsNstuff]

In Ohio, we "should" get a realtor to represent us & help us look & get a fair deal. You would be surprised how many houses you might find that you like & can afford. NEVER use the selling agent to put the deal together for you, you won't get the best possible deal. The sign in front of each house is NOT who you want to talk to. Use a different company (pick a different sign) to find someone to help you.

Offering 10% under asking price should offend no one. Don't be afraid to make any low offer if it's been on the market for a while. The tax numbers always come in low from my experience, not a good comparator. Look at other houses in the area & go by the appraisal. You can ask them to pay part or all (actually most) of your closing costs too ($2000-$4500 approx on 100K) and have them pay for extras like home inspection, septic/well tests, etc... Go for it all, you can't get it if you don't ask
Happy House Hunting!

 

[Little6pack]

If you want the house bad enough & the valued price is on par with other homes in the area. Then you could ask the owner to hold a 2nd mortage for the difference.

You can ask him to do this but, if I was the owner I wouldn't hold a 2nd mortage.

 

[87TR_WE4$$$]

Hey guys,

I had been working with the listing agent for this house. I tried to make a low ball offer on my own anyway for $80K and she said they had to much into it so she would not let me offer that. I understand the seller's holding out for more, but this shady buisness is starting to leave a sour taste in my mouth.

 

[GN One Day...]

I feel your pain. We went for a final look at a house, for sale by owner, with our agent tonight. We like the house, but they are being totally unreasonable. When our agent talked to them, they wouldn't budge on the price. Nothing in writing, we'll put it under their noses tomorrow and see, but I'm pretty sure they're just fishing instead of selling. They want $92/sq ft, but I have a printout of EVERY SALE in the neighborhood for the last year showing everying going at $80. Big difference here. They claim to have an appraisal, but can't seem to produce it. If so, I'd like to know who he is that would risk his livlihood on a bogus appraisal. I'd like to know so I know who to avoid for my clients loans.

All this time, I'm sitting here watching my rates shoot up every day, sometimes twice a day. Guys, this is not going to be a good week, IMO, for rates. Again.

We did find a great house, but it's got some settlement that I'm not sure I'm comfortable with. Kind of common around here, but still worrisome and potentially very expensive.

 

[6pack]

Re: Re: House buying ?

Originally posted by GN One Day...
I don't know about your area, but here, it is a seller's market and houses aren't listed for more than a few weeks. Way more buyers than sellers. They can afford the time to start higher up and test the waters.

Mine has been for sale for 10 months!

And you can get a house built in our area for way less than $80 a sq. ft. I have seen as low as $50 at one place.

 

[GN One Day...]

I'm sorry you're having trouble selling, I know that's got to be frustrating from that end too. I keep thinking about building, but I really don't want to do that until a few years from now. I'm ready to get going now, I can close in no time, but just can't find a freaking house. Going to drive around some today and collect addresses and do some research. My agent going to call on a few for us to see if anyone's interested in selling.

 

[2quiktocare]

If the listing agent will not present an offer, I can see why the house hasn't sold yet. The agent is out for their own best interest, not yours or the sellers. I would get an independent agent, or even let the people know you had made an offer and their agent wasn't willing to present it. They have the right to know the agent isn't presenting all offers ( in California it's illegal for an agent not to present all offers). If your offer is too low, the seller has the right to decline, not their agent. This time of year is a very weak time for the market, even when it is strong. No one is looking at moving after school starts, and that would be a projected move in time. Go for it. Every house I have bought or sold was on my terms. I may have upset a few realtors, but I got what I wanted at my price. I bought a house in Southern California for $30,000 less than asking price when their agent told ours that they wouldn't present it and embarrass herself. I went straight to the people and they fired her, and then took my offer. Go for it, and screw their agent. Obviously the agent isn't working for them and that is why the house has sat on the market so long,,,,,,,,,,,,,,,,,,,,,,,,,,, Mark

 

[GN One Day...]

This is my agent, the house is for sale by owner. They'd still have to pay commission, but only half. I know our agent won't screw us, I work with her a lot (I'm a mortgage broker) which is why we're using her. We won't buy a house that doesn't have her involved. Especially a for sale by owner house, those people hardly ever seem to know what they're doing.
We also know that when they bought the house about 2 years ago that they paid about 20,000 less than what they're asking now. My offer is about 9,000 over what they paid, which is reasonable for the rate of appreciation and the sales. Plus, I've done loans in the neighborhood, so I know first hand what they should be going for. However, it is their house to do what they want with, even if it doesn't make sense. They're supposed to be moving soon, so I don't know why they're holding out.

 

[6pack]

Bill,
Where you looking to buy?

 

[GN One Day...]

Riverchase
The Willows at Castlewoods
Marblehead

Reservoir Brandon area, we already live in this area, have daycare, good schools etc.

 

[2quiktocare]

Then time is on your side GN. a few months of double payments and they will get real tired real quick hopefully

 

[DKREDT]

The interest rates being low have really driven up the prices of homes.

My house was appraised last fall at $145k. We just sold it for $165K, for sale by owner in two days.

Screw the real estate agents. Have a lawyer help you draft any offer you make.

The assesed value has nothing to do with current market price, but will be jacked up one a new sale price is recorded.

Usually there may be 10% fluff in what someone is asking. Offer much lower than that and you risk offending the seller. If it is for sale by owner, verbally discuss where they need to be on price, and if you reach a consensus, have your lawyer draft an offer.

You will be hard pressed to find a "deal" as long as interest rates are this low.

Good luck!

Joel

 

[GN One Day...]

Got news for you on those interest rates.
About 1% higher than we had just about 2 mos ago. I think some people are starting to realize that. Some sellers are realizing their rate for the next house is going up too and they're anxious to get going.