how much should I offer for a house?

[porkrind]

I found a house I like at the upper end of my price range. It has been on the market for about 6 months, so I imagine it is overpriced. It is a nice house in a great neighborhood, but it is overbuilt with a small lot. I've heard these type of properties are white elephants and are difficult to sell. I get the idea that the seller is in a difficult spot and very eager to sell. I'm thinking of giving him a lowball offer of ~85% of his asking price. Has anyone been through this and could offer advice? BTW, I'm not using an agent because I've had bad experiences with them. Thanks!

[Dookus]

1. Find a better agent

I had an awesome one, and there's no way I would've gotten my house without him.

Unless you're extremely knowledgeable about real estate in your area, you should be represented. Good luck!

[Jack_Dawson]

2. In California? $600,000

[livetohike]

3. You have to think about your future

if you think it is "difficult to sell", then what will the conditions be when you want to sell it? See if you can find some recent sales prices in the neighborhood of similar homes before you decide on what you would be willing to pay.

You can always negotiate. Offer the 85% after researching what homes have sold for. You can go up from that in negotiations.

[Nicholas D Wolfwood]

7. Excellent point

Remember, real estate is an investment.

[Momgonepostal]

4. 85% sounds a tad low

I'd hate to throw too low of an offer and tick off the sellers, so they dismiss you completely.

The 6 months on the market part is a good sign for you, though.

Can you look up what other houses in the neighborhood have sold for lately?

[Donkeyboy75]

5. 85% is way low.

We just sold our place by owner. I know we, and others I am friends with, would refuse to negotiate with someone who lowballed us that badly. But I would also take Dookus' advice. Things may be different where you are. Here in Chicago, one can expect to pay 95-98% of the asking price.

[Nicholas D Wolfwood]

6. Depends on how much we're talking

You don't want to go so low that you're going to insult the current owner, because then you won't get them to budge at all.


85% seems way too low-balled. We're talking almost $40k drop on a $250k house. That's a lot. 10% drop at most is lowballing.

[demnan]

8. You don't live in Northern Virginia

Nothing stays on the market that long and everything goes for above asking price!

[donco6]

9. 85 is too low

They'll be pissed. If they've had it on the market 6 mos. they're probably able to wait longer. Contingency sales usually don't last more than 3 mos.

All things being equal (you've researched going prices in the neighborhood, your agent is competent, the home is really what you want and you know your upper limit for sure) give them an offer that just seems fair to you. I know some people just can't stand it if they think they've paid a dollar too much for something, but chances are, you'll just be making a good investment.

[porkrind]

10. 85% is low, but

I think they priced it too high. We have done a lot of comparisons, and we know the area quite well. I think that's why they haven't sold it yet. It's hard to know. ???