About to make an offer....50k less vs the foundation problem dream home

gnc0988 · November 2013

The house that I fell in love with yesterday has a huge foundation crack.... So that's out

The first house I really loved is going for 149k and there will be putting on a new roof. The house needs to be totally updated cosmetically, needs new windows. Outlets, a roof and the appliances are from the 70s.

We are putting in an offer tomorrow for 99,900 and telling the seller not to worry about the roof.

Looks like the house is a parents house who passed away and the kids are selling. It's been on the market since August and they dropped the price $6400 two weeks after listing. Homes in the neighborhood are comparable around 140-150k, however I have no idea what kind of updates they may or may not have. Also, the last two houses in the area that sold in the last 9 months went for 130k and the other was less than 100k.

I think asking them to forget about putting on a roof and mentioning all the updates the home needs 99k-110k is a fair price. I know that a seller can get offended and reject us all together but considering it's a house they inherited that hasn't had an update since it was built in 65 I'm hoping they'll just let it go. I'm also banking on that BIL got his house for 105k when it wAs listed at 180k because the kids were just so desperate to sell.

I know it says to not offer less than 85% of asking price, but how would you respond to a buyer like us? I figure the worst they can say is no

jtmh2012 · November 2013

I think a lot of it will depend on how much you want the house. If you're willing to toss an offer in and see if sticks, but walk away if you offended the selling, you can try it. If you actually want the house and want to negotiate with them, I think I'd come up some. Has your realtor pulled the comps for the neighborhood?

Sisugal · November 2013

Are you working with a realtor? If not, it is to your advantage to do so -- (no cost to you) Is the home being sold thru a realtor? If so, I would think that the selling price has already been run thru comps. I think you are really low balling them.
Forget appliances and cosmetic updating - unless this is a neighborhood where everyone has them. I always consider that the sellers absorb that.
Roof and electrical updates are bargaining issues.

Sisugal · November 2013

Are you working with a realtor? If not, it is to your advantage to do so -- (no cost to you) Is the home being sold thru a realtor? If so, I would think that the selling price has already been run thru comps. I think you are really low balling them.
Forget appliances and cosmetic updating - unless this is a neighborhood where everyone has them. I always consider that the sellers absorb that.
Roof and electrical updates are bargaining issues.

G2SoccerTaz · November 2013

Appliance and cosmetic updating should not be considered in the offer price. The roof and electrical updates should. To do $50,000 less than the asking price is a slap in the face to the seller. Any changes to the house that you want to make to make it yours like the cosmetic and appliance is at your expense. Me personally do not see what the fuss is about having an older kitchen. I like the older kitchen and appliances. Granite counter tops, stainless steel appliances is YOUR preference to make the house YOURS. New windows are not necessary unless they leak or don't open. When you try to put new windows into an older house, they almost always seem to have some sort of problem.

I would see how much it would cost to replace the roof and the electrical and take that off the list price and go from there.

gnc0988 · November 2013

Values in the area are around 149k. Similar homes in the same suburb that have been completely updated including new roofs are selling between 140-150k which equals out to $58/sq ft. We would be offering something like $45 a sq foot

Janessadawn · November 2013

Cosmetic updates generally aren't something to factor in when you're making an offer, but if you think the house needs new outlets there's a chance it could need to be majorly re-wired. That isn't gonna be cheap, and neither is a new roof. Sounds like the sellers know that they won't get what they want unless they put on a new roof, which is probably why they plan to do so. With that being the case, they'll probably laugh at your offer and not even bother countering. You may need to meet them closer to their price, let them put on a roof, and adjust the price accordingly for whatever electrical updates the house needs. Cosmetic stuff and upgrading the windows are things that fall on you when you buy a house, not the sellers.

casey8784 · November 2013

Janessadawn said:

Cosmetic updates generally aren't something to factor in when you're making an offer, but if you think the house needs new outlets there's a chance it could need to be majorly re-wired. That isn't gonna be cheap, and neither is a new roof. Sounds like the sellers know that they won't get what they want unless they put on a new roof, which is probably why they plan to do so. With that being the case, they'll probably laugh at your offer and not even bother countering. You may need to meet them closer to their price, let them put on a roof, and adjust the price accordingly for whatever electrical updates the house needs. Cosmetic stuff and upgrading the windows are things that fall on you when you buy a house, not the sellers.

This. Offer closer to the asking price, then when the inspection is done you'll find out exactly where the problems are). If there is major electrical that needs to be done along with other structural issues, THEN you'd have an opportunity to negotiate down a lot more, and the seller would take you more seriously.

Good luck! Hope to hear how it goes

About to make an offer....50k less vs the foundation problem dream home

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