Need advice on putting in 'low ball' offer
Need some advice on putting in what may seem as a "low ball" offer but I donÂt think it is, IMO (of course, that is my opinion, and why IÂm seeking advice :-) We are looking to buy a home in a small-ish eastern town (which I donÂt want to name at this time) which has been fairly stable IÂd say job- and housing-wise. We are looking to move into town to be very close to work and nice schools.
Larger houses in town can be expensive due to location, and I understand that (Nothing is really old enough to have any particular historical value). But I think the prices on some of the homes weÂre looking at are astronomical. The town has a nice searchable online database where you can find dates and prices of house purchases, as well tax documents with assessed value. The only downside really is that it doesnÂt include square footage. Homes on the same street can vary considerably in size.
IÂll give a few examples of homes we are looking at Â one we are looking at was built in the 1950s and nothing has been updated since then. The most recent comp I could find on the same street sold for $440K in 2007, and its 2009 assessed value is $416K. The $440K previous sale appears to be about the same sq footage as the one we are looking at, approx. same amount of yard, and it appears to be somewhat newer of a home. The house we are looking at today is listed at $565K! The most expensive recently sold houses I could find on neighboring streets went for $375K, $365K, and lower $300K in 2008. There is another house in the same neighborhood listed at $600K, but its been on the market for a little over a year now.
Two other houses we are looking at today have similar scenarios. We are looking at a second that is listed at $459K, I think because the people refinished the hardwood floors and probably upgraded the baths and kitchens. (IÂll find out more when I see it). But they bought a virtually identical house next door for themselves to live in for $300K last year.
Another older house we will be looking at today is listed also at $565K, but the most expensive recent sale on the same street for a comparable house was in 2007 for $250K (I need to check the sq ft of this one). The most phenomenal older house on the street is assessed at $400K.
If I wanted to put an offer in on one of these houses, should I feel any angst about putting it in a good bit lower than the asking price (especially since they all would likely need some fixing-upping or upgrading)? More in line with what I see to be the more recent sales and assessments? Granted, these houses havenÂt been on the market for a huge length of time (a few months), but the one has been on since February. There are other examples I could come up with that have been on the market longer. I havenÂt brought this up with our BA yet to get her opinion but I wanted to see if anyone out there has any insight or thinks IÂm missing something in my "analysis".