I found a home that I like a lot. The asking price is still a bit high in my opinion, both on what I can afford and the updates that it currently I think it needs.
It's a 4 bed, 2 bath home at 2500 sq ft. Asking price is at $275,000, with the kitchen needing a major renovation (think '80s kitchen from your imagination) and both bathrooms needing an update as well.
The home is reasonable priced for the area but it's been on the market for over a year now. Started off at $350,000 and has slowly lowered is asking price with the most recent listing updated at the end of May.
I was thinking of putting an offer in of around 15-20% lower than current listed pricing. Between renovations and the fact even after the lowering of the listing price, it's still listed for sale 3 months later.
Would this come across as insulting? It doesn't seem like they are in much of a hurry to sell and are ok just waiting it out.
Last edited by adamjohnson on Fri Dec 16, 2016 3:56 am; edited 1 time in total
Thu Dec 15, 2016 10:02 am
oldguy Senior Member
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quote: Would this come across as insulting? It doesn't seem like they are in much of a hurry to sell and are ok just waiting it out.
The house has been for sale for a year, they have probably paid an extra $20,000 for cost-of-ownership. That 's a bad approach (lots of people tried it in 2007 / hoping to avoid being upside-down.
It's way better to price the house to the Current Market and sell it in a couple weeks. (I'm a landlord, multiple single family houses - I know the futility of owning an extra house for months while you wish foe a higher price).
OTOH, I know a landlord who has had a For Sale sign for several years, just waiting for the "market to come back". So you can't outguess human nature.
But I wouldn't worry about insulting anyone, all they can do is say"no". Conversely, you may catch them at a point when they say 'enough is enough', let's grab the offer and move on.
As for updating a 1980's house - 30 or 40 years is fairly young in house-years. If you are young/trendy you probably want granite, under counter SS sinks, no carpet, wood flooring, new lighting, etc. (On flips, we have to do all of those before buyers will look). But for you, a buyer, those things are wants, not needs - you can update things over a longterm (remember, "trendy" is a moving target, your new stuff will be dated in 2030, it is costly to chase trends.
Thu Dec 15, 2016 4:30 pm
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I ran into the same situation 2 years ago when we were looking at a new house on a lake. It needed about 100k in repairs, was near a busy highway and fair market value said it was worth 260k before all repairs. So I told my realtor to put in an offer of 240k. Well, the owners sent back an email saying their were appalled at my offer and that they wouldn't counter. So we moved on an bought another house for under list that we love.
So my point is that if you have done the research on the comps in the neighborhood and applied whatever repairs the house needs, I think a discounted offer at 15% is completely fair. If they are insulted then either they are in a fair tale where they believe their home is worth more then the market bears or they are very emotional people.
So sit down and do the math.
Risk comes from not knowing what you're doing. (Warren Buffet)
Thu Dec 15, 2016 4:58 pm
Jerryll First Time Poster
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You just need to offer what you are willing to pay for the house.
You really have nothing to lose. However if you make an "insulting" low offer you risk the seller not accepting any offer s from you in case you want to bid higher later.