Advice on pricing an offer

UpNorthHeyFebruary 28, 2013

I've found a 1958 ranch that is in a good location for me (walking distance to a large park). A bldg inspector friend has gone over the house and it is solid. Limitations are a 1-car garage, unfinished basement that doesn't lend itself to finishing out, 1970s kitchen and just one bath. The good things are the location, fenced yard with mature trees, hardwood floors and a fireplace. I looked at about 15 sold houses in the area that are similar, and the average price was $140,000. This house is listed at $155,000, down from $165,000. I'd like to offer $140,000--is that totally low ball? My buyer's agent said she thought it was priced well at $155,000, but I question that since it has been on the market over 265 days. Every $ thousand I save could go to refinishing the floors, remodeling the kitchen, installing solar hot water, fireplace insert etc.

I've sold my house, have great credit and can make a clean offer. Advice???

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redcurls

I would have offered less if I was the buyer.

I'd JUMP at yours if I was the seller!!!! You are the answer to a prayer for many.....

    Bookmark   February 28, 2013 at 1:13AM
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brickeyee

What was the spread on the prices?

The "average price" by itself means little.

Have your 'buyers agent" do an actual CMA.

    Bookmark   February 28, 2013 at 11:39AM
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UpNorthHey

The spread is from $117,500-187,000. Eight of the 14 are in the $130k-$140k.

I will ask my buyer's agent to do a market analysis instead of relying on her gut feeling that it is priced well

Thanks.

    Bookmark   February 28, 2013 at 9:57PM
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marys1000

You know that whole "do a CMA" thing doesn't always work. It depends on the type of property, how many, if any true comparables there are and in what time frame. Just saying. People throw it out there like its the coming of Christ or something.
Hope it works for you, otherwise....how long will you live there and how bad do you want it?

    Bookmark   March 3, 2013 at 6:58PM
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weedyacres

Your agent doesn't sound like she's got any financial brains. Reminds me of a buyer's agent I had, who, when I asked him for advice on what I should offer, said "tell me what you're thinking and I'll tell you if it seems right." REALLY?????

The way you need to come up with comps is to look at the detail as an appraiser would: use homes of similar size/configuration in the direct neighborhood, adjust for square footage, then browse through the photos (our MLS keeps them) and see if you need to make any further adjustments for condition/finishes. The average of those adjusted values should give you a decent number.

    Bookmark   March 4, 2013 at 7:30PM
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UpNorthHey

Thanks everyone, When I called my realtor today, she said there is now a pending/accepted offer. Should've called last week.

I did compare the 14 in the area (3 similar neighborhoods) for #BR, #BA, size of garage, finished basement, deck. But for some reason didn't adjust for sq ft, so will do that next time.

    Bookmark   March 5, 2013 at 7:47PM
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kirkhall

If your agent was working like an agent should, and you were communicating with your agent, your agent could have called the sellers' agent last week and said you were interested. And, then, they would have called you and asked if you wanted to put in an offer, because they just got one they were going to consider... you'd have been in the running. Now, you are out, unless the buyers back out.

Talk with your agent, and make them work for you.

    Bookmark   March 5, 2013 at 9:21PM
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brickeyee

"You know that whole "do a CMA" thing doesn't always work. It depends on the type of property, how many, if any true comparables there are and in what time frame. "

Do you prefer a Ouija board or crystal ball?

It at least sets a starting point for an offer.

And the lack of decent comps is often a red flag all by itself.

Wait till an actual appraiser finds no comps.

    Bookmark   March 6, 2013 at 2:14PM
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