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Home Buying Question

Alright before I get too far, I know this isn't the home buying message board, but you ladies have great advice for life in general, so I'm guessing you will have some awesome advice for this as well.

H and I just saw a house that we LOVE.  It's the first one where I didn't think, 'Wow, I only have to put up with this for 5 years and then I can run'.  And the only house that H and I both said we LOVED and were ready to pack to move in.  It however, is at the top of our budget.  Could we do it? Yes, but we don't want to eat ramen for the rest of our lives (over-exaggerating, but you get the idea ;) )  For those of you who have bought your homes, or those who were on the selling side, is there a certain dollar amount or percentage of asking price at which you would not consider an offer serious?  We are thinking of going in about $15,000 under asking price and negotiating from there.  We would love to buy it for $10,000 under asking but with seller assist and a provision for additional monies to be used to bring a fire door up to code, and get laundry appliances.  Are we totally insane for thinking that is possible?  We are first time home buyers and are very new to the negotiations so please let me know what you think?? There is a good chance we will be writing our offer over the weekend and I don't want to get in and have zero idea of where to go.  Should we start out lower than $15,000 below?  Closer to $10,000 below?  Ideas, thoughts, and questions welcome! :)  Thank you!!

Re: Home Buying Question

  • It really depends on the market.

    The best advice I can give you is make an offer taking into consideration the area comps and what you're comfortable paying.  Your agent should be able to help you with all of this.





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  • No advice- but wanted to say good luck!
  • This is totally dependent on the market in your area and the price of the house. In some places with very hot markets, any offer not at or above the asking price is not considered serious. In my area 10-15k under asking would be considered serious for a house above 130k or so but there'd be negotiation and the buyer would likely need to come up.

    I'd check with your realtor. They should be able to give you a realistic picture of what a reasonable offer should be for that house.

    Good luck! House hunting is the most fun and stressful thing ever!

    Well, other than TTC of course...

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  • It's really hard to say without knowing more specifics like the list price, how long it's been on the market, what comparable homes have gone for in the area, etc.

    For example, there's a huge difference in offering $85k for a $100k list price vs offering $485 for a $500k house. Also if it just went on the market, they'll probably be less inclined to negotiate, whereas if it's been sitting for a while with no offers, they may be feeling desperate.

    As far as making an offer, you'll never get a lower price than your initial offer, so you may want to go in low... But you don't want to turn the sellers off with an offer that's too low or be outbid if there are other offers on the table.

    Are you working with a buyers agent? I would highly recommend it as a first time buyer. They'll be able to guide you through the process.

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  • @mrsvedo - The TTC part comes after we close. :)

    And in terms of comparables, our Realtor told us that ours is middle of the road for all categories: Sold, For Sale, Under contract, etc.  But the comps she sent us didn't seem too exciting to us.  There were houses in worse condition that were priced above ours.

    Another thing I should have mentioned was that we looked at the same floor plan house next door.  It is also for sale at $15,000 less than THE house.  The difference is in the updates.  The house we love has all new dark wood laminate flooring throughout, a GORGEOUS updated kitchen, and 2 gutted and brand new bathrooms.  Otherwise, they are completely the same house.  If we bought the house next door, we would be offering far less than they're asking as well because we would need to do make it look as we wanted it.  That's what also makes this harder.
  • @iwalktheline - It has been on the market since early Nov.  They reduced the price by $2,600 in early December.

    And we do have an agent.  She is helpful and gives us a run down of numbers and such, but I also like advice from people who have been at this point IRL.  I want as much info as I can get my hands on before we go to the table. :)
  • As others have said, the market plays into it so it's difficult to say.  I would also consider if you are willing to lose out on this house if a stronger offer comes in...  My DH works as a financial adviser specializing in mortgages and he often shows people the difference a few thousand makes on the mortgage payment amortized over 25 years... Its a coffee a day in many cases.

    So my advice is weigh how much you love the house against how much you can afford/willing to pay for it.  Going in $15K under is probably not a deal breaker, but their counter will be the true test.

    Best of luck!
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  • Just want to say good luck! :)

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  • Thank you for all of the advice and well wishes.

    The plot thickens - Our agent called to set up a second viewing and the seller's agent said that there is another couple really interested in the property.  Ugh!  I suppose what is meant to be, will be, right?  We'll see how Sunday goes with my dad going to see it.  I hope he doesn't find anything awful. :-/
  • I don't know where you live, but where I live (CA) I don't think an offer that far under asking would be accepted right now. However, it's usually slower in the winter and if it's been listed since Nov you may have a shot. I would listen to your realtor's advice and try not to get too caught up on getting a good deal if you are really in love with the place. I offered full price for my house at a time when most houses in my neighborhood were going for under asking, but there was a lot of interest in the house and it was perfect for me. Haven't regretted it one bit! Good luck!
  • I can only answer this based on our experience in our housing market in suburban PA.

    Our initial offer on our house was $15,000 under asking price (for a house listed in the mid $200,000s). But the house had been on the market for way longer than "your" house has been, and there was no other interest. So we weren't low-balling them too much, and they came back and negotiated up the price.

    I think if you really REALLY love this house, I wouldn't go lower than $10,000 under asking, especially since everything is already done for you. And offering that far under only if the housing market is a little on the slow side where you are and the house is decently comped (it sounds like it's probably even priced a little under market value for its upgrades in the hopes they'll get multiple offers).
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