1st Time Home Buyer.. What Should I Offer For This Home. Any Suggestions Would Be Great.?
$134,900 is the asking price right now. It was $136,900 1 month ago and $140,000 4 months ago. Built in 1978, 1700 sq ft, well, septic, electric baseboard heating, fireplace, 1 acre brick split level home. Beautiful. It is in a neighborhood with 1 road in and out with roughly 30 houses or less. Average home age is 1988, 2100 sq ft, recent homes sold were $160k-$267k. Average value is about $80k more then this one. Some have wells some have just taped in to local water service. Well in this home is fine. Area is economically depressed Eastern Ohio and isn’t going to change anytime soon. The sellers live over an hour away and are renting waiting for this to sell. They bought it in 1998 for $93k but note they did update the kitchen and added berber carpets. This home is already a steal at $134,900 but I’d to get it cheaper. Any recommendations on a good price I should offer without sounding not serious because I am, it will be mine. 
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January 2, 2010 @ 4:48 pm
You need a buyer’s agent. They cost you nothing and can save you thousands.
January 2, 2010 @ 10:48 pm
I will assume the role of your buyer agent here and point out two potential pitfalls with this property. The first is the electric baseboard heat. Please check with the local utility, if you can, to determine the average monthly cost of electricity for this property. Electric heating can be VERY expensive, especially given the age of the property and its probable insulation. You may not get a decent monthly average use, however, since the home has been vacant for a year, and utilities normally provide information only for the last twelve months average use.
The second issue is the well. While you indicate that it is in good condition, you MAY be required to hook up to the local water utility as part of the purchase agreement. Some municipalities allow houses to retain their well water supplies under a ‘grandfather clause’, but mandate a hook up to the municipal water system if the property changes ownership.
Additionally, do NOT offer to purchase this property without a professional inspection. To do so is downright stupid. While an inspection contingency may scare the sellers, you do not have to put such a contingency into your offer. Ask permission to have the inspection PRIOR to writing any offer (including the well and septic), so that you are knowledgeable of exactly what you are buying.
Once you have ascertained the answers to the situations I have posed to you, then decide on what you want to offer.
An unsafe well, a failed septic, a new heating system and a hook up to the municipal water supply are ALL expensive repairs to handle. Don’t go into this blind.
Good luck !
January 2, 2010 @ 11:57 pm
NEVER buy a home without inspections, especially a home that has been a rental. Tenants are very hard on homes and I would never advise my clients to purchase without inspections.
Electric baseboard heat is the most expensive heat source I am aware of. Call the utility company and get the last 12 month history of electric bills.
Well and septic can be very expensive repairs. Ask for a well flow and potability test and a septic inspection.
Make what offer you feel comfortable with. There is a reason this house has been on the market for a year and that concerns me. Is something wrong or are they holding out for their price? Be cautious of the low ball offer, although I encourage my clients not to get emotional about the transaction, some sellers are offended by low offers and won’t even counter offer. One more thing to consider on your offer, any concessions you ask for comes off the seller’s bottom line, so take that into consideration.
Also, if you are pre-approved for the loan, include that you will provide a pre-approval letter within 3 days of the accepted offer. This will let the seller know that you are serious and financing shouldn’t be an issue.
Good luck!
January 3, 2010 @ 12:15 am
Any offer IS a serious offer. It is a legal document of intent to buy backed up with a cash deposit. You could start at $126,000, but if this is your first house I would NOT go with a *AS IS* sale. Are you sure that the roof and foundation is solid? Are there easements or encroachments? You should do a full house inspection, but if it turns up only minor problems, you don’t need to ask for considerations. Anything you know about this house is something that you can handle later.
January 3, 2010 @ 1:37 am
As far as price, you will need to seek advice of a real estate agent that works in that specific community.
A big red flag is why has it not sold in a year, and that alone is a reason to no buy “as is”. You need to get a home inspection and if they aren’t willing to, that may be why it hasn’t sold. They could be hiding something, or not disclosing something, but know it is a buyers market and there are plenty of homes to choose from, so get fixated on just one as it may not be the best investment.
I would be very leery of a house that has been vacant for a year, especially through the winter.
January 3, 2010 @ 2:38 am
Without getting a certified inspector, you could probably offer a little less. Also, see if they will pitch in some closing costs. You have a great opportunity with this home. Sounds like you should move on it right away. Good Luck!
January 3, 2010 @ 6:23 am
Tell them $126 “AS IS” no inspections of ANY kind. That sounds very fair. My friend, do not be afraid to offer this price. They probably bought the home for $80 grand back when it was built. Of course they deserve the cash due to the inflation rise but come on now. The market is getting sour everywhere you turn. They will not be offended. Stand firm, they will counter offer you back at maybe 130. Play around with it, they are lucky to have you nibbling on their hook.