Help! First-Time Homebuyer Needs Advice
We have our eye on a three-bedroom, two-bath house in our village, but we don't know how to go about making an offer. The house is listed at $125,000 and has been on the market for almost a year. The backyard is miniscule (luckily, we don't have kids) and there is no garage or real driveway (just an asphalt strip to park the car). I want to make an offer, but I don't want to insult the seller. Is there a ratio of the asking price that is appropriate to offer—for example, 10% of what they're asking? Obviously, we want to get the best price, but so do the sellers. What constitutes a low-ball offer? A medium offer? Help!
posted by Mountain Girl @ 8:20 AM
3 Comments:
Low ball the offer if possible especially since it's been on the market for a while. Consider any cost associated with making improvements including adding a garage if that is what you like. Also consider the age of the roof, furnace, windows, etc. The high price items that when you have to replace them, cost a lot of money. Consider the appliances as well. A lot of people overlook them but the cost of everything really adds up. Look at comparables in the neighborhood if possible. Good luck!!!
Thanks for linking me! I think your realtor should have some advice about this. I agree with Chitown, if it's been on the market a while, I'd offer them something on the low side, like 10% less than list.
But a good realtor should be able to help you by pulling comparables and giving you an honest analysis.
Get an inspection first if you can. It's usually around $300. Make sure there are no major repairs needed. Get the inspector to list everything "wrong" with the house, from drippy faucets to leaking roof. Then decide what you want them to fix, what you are willing to overlook, and what you are willing to live with or take on yourself in exchange for a cheaper price. Let your Realtor help you with value, as mapgirl said, then ask around to see how much it would cost to fix or replace anything wrong. Good luck!
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