House on market for nearly 3 years, what to offer?

dazzlemewithcolorMarch 7, 2010

A house I am interested in has been on the market for nearly 3 years. There are a lot of homes in this price range that are 200 to 2.5 years DOM. Offer wise, how low on the offer do you think is reasonable to go for a starting point?

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Well how close is the listing price to what comparable houses are selling for?

    Bookmark   March 8, 2010 at 12:08AM
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I have a suspicion that the reason the house has been on the market that long is because the seller is unwilling to accept a lower price. I think in this instance you need to make an offer armed with some facts. Look into what the selling price of homes in the area are. Listing prices mean nothing, as they aren't what was paid. Also see if you can look up real estate information on that property (ie, last time it was sold, what is owed on the house). The more information you can gather about the house the better prepared you will be. Once you have this info, my starting point would probably be 75% of the listing price, and submit your findings with that offer (if possible).

    Bookmark   March 8, 2010 at 7:43AM
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I definitely agree about the 'Get your facts' and about the listing's probably being that old just because they won't accept a lowball bid. Which tells me your job is to convince the seller your bid is not a lowball. Get enough sales comps so you can make that case.

As to your initial offer -- I usually try to position it so that my expected sales price is about half way between the listing price and my first offer.

    Bookmark   March 8, 2010 at 12:25PM
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You have no idea what the seller is thinking or what their motivation is, so it doesn't do much good to speculate.

If you are going to make an offer on this house (or any house), you should make a fair offer based on recent comparable sales. You can provide the comps with the offer.

Keep in mind though, it takes 2 sides to make a transaction work. You have to be willing to buy at a fair market price and the seller needs to be willing to sell at a fair market price. If either of those aren't true, you aren't going to reach an agreement. If the seller overvalues their house by 25%, there is no negotiating strategy that will work.

    Bookmark   March 8, 2010 at 1:01PM
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I appreciate your thoughts! Thanks so much.

    Bookmark   March 8, 2010 at 7:57PM
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Dazzle, I would also suggest obtaining as much pertinent information as possible. An informed buyer is the best kind of buyer. The price you offer should be based on current market conditions, not necessarily on the asking price (which could be way overpriced and not adjusted to reflect current prices). Good luck and post updates as it goes along.

    Bookmark   March 10, 2010 at 3:43PM
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Sounds like my son's neighbors. The house next to them has been on the market two years. They have it way overpriced. Several offers have been made on the house. All have been refused. They want their asking price and not a cent less.

    Bookmark   March 10, 2010 at 6:07PM
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