How low to go on a offer on a house?

[Elite]

We are going to look at a house tomorrow but it has been on the market for 80 days now and I can’t seem to figure out why? The price is a little high but it is a busy market around here and the house checks a lot of boxes off so I am surprised it hasn’t sold? Anything to watch for tomorrow so I do not miss anything? And if I do like how low should I go with a offer? House is listed at $409,000


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[HuntInWild88]

Depending on where you are located could be a factory on why it's been on the market. We live in a military town so 90% of the loans are going to be VA. Our housing market over the summer blew up!!! However the houses wernt appraising for what the houses were listed as. Most people using VA loans don't have cash to make up the difference. So the house sits on the market until the seller comes down in price or the right buyer comes along.

Also it might no pass inspection for a VA loan(they are a little more strict) and the seller doesn't want to fix what ever it is.

Look at the age of the roof and appliances. Has the home had water/fire damage. Don't know the area but have to throw this out there..has the home had meth cooked in it? These are all things that could be a factor.

 

[TSAMP]

I think if it's been on 80 days and you like the home after you look at it, I would pay the cash for a inspection prior to my offer. House down the street from me has sold 2 times in the last 3 years. Each time it goes for sale offers come in and fall through, at least 2 or 3 times each sale.. Finally found out the fireplace has serious structural issues and the new sellers call it out as decorative only.

 

[GSPHUNTER]

I don't know if you have school age kids or not but that is often a big consideration when buying a home. You may want to check about crimes in the area. I would ask realtor about any known issues with the house which could cost you money issues down the road. If there are issue they know about they may be required by law to make you aware of them. If something bothers you about the house have an inspection done.

 

[go_deep]

Ask the listing agent if any know issues, no issues I'd come in a little low. Up to you on weather that's 5k or 20k, but without a doubt make it contingent on the home passing all inspections, then use the money you save to have the inspections done, by certified professionals.

 

[Silveroddo]

If your realtor is any good they should have some insight. A good one should know the local market and be able to feel out where to start on the negotiating.

 

[WeiserBucks]

I don't know if you have school age kids or not but that is often a big consideration when buying a home. You may want to check about crimes in the area. I would ask realtor about any known issues with the house which could cost you money issues down the road. If there are issue they know about they may be required by law to make you aware of them. If something bothers you about the house have an inspection done.

This is good advice, could be a bunch of child molesters in the area.

 

[thinhorn_AK]

Like others have said, make sure the offer is contingent on passing an inspection. Look at the floor, septic system, easements, poke around in the attic. Make sure you know what you are looking for. Is there any leakage in the attic? Is the floor joists up to code? Where are the property lines? Is it haunted? Is there a crackhouse next door etc…sometimes when houses are on the market so long, it’s for good reason, especially in today’s housing market.

 

[TreeStandAthlete]

When we bought our home a few years ago it was a similar situation. Turns out the people who were selling it were drowning in debt and had started at a crazy asking price and refused to come down for a number of months. There was a lien on the house and some other stuff our lawyer had to have them clean up before we bought it but other than that everything worked out great and we're going to make a killing when we turn around and sell this place in a couple years because we got such a good deal on it. We did have a regular flow of repo men, debt collectors, and sheriff's for a year or so stopping by trying to track down the previous owners. All real nice people when you're not the one their looking for!

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[EastMT]

It all depends where it is, my sister is a realtor in NW Montana and the avg sell price for her homes has been 7-10% above the listing price. Things are starting to calm down, but still over asking.

If it’s in a slower area, Id ask your realtor what the local accepted offers have been running (at below, above ask) whether it’s normal for the buyer/seller pays or to split the closing costs and prepaids. All these things will factor into the offer. Some areas like full prices and seller pay all the prepaids/closing, some areas like lower offer and buyer to pay the prepaids. I’d check what the norm is for an area.

Another trick I’ve learned as I’m a DIY house remodeler, we won a lower bid on this house as we put in there that we would would buy the home as is and request no repairs after the inspection was complete to verify no major issues were present. People don’t want the hassle of trying to get something fixed in 30 days, so we won cheaper than the other bids.

By prepaids I mean tax’s/ins/etc.

 

[Carrot Farmer]

You can always counter offer….everything is contingent on passing inspection(and don’t skimp on finding the cheapest inspector!)


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