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  1. #1
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    Default offer on a house and price

    I'm just wondering, what would you say how much lower price would be OK to offer if for example the asking price is $287.000?
    A home without a cat is just a house...

  2. #2
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    Wouldn't your agent have an idea of an acceptable offer? I guess it all depends on the house, area...there are a lot of factors.

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    ask your agent to provide you the final selling prices of the nearby properties which are sold within the last three months. Then you will have an idea how much to offer.

  4. #4
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    Do you know how long it has been on the market? I know that there is a house near us, that the owner has accepted a job in Mississauga and is living there, so my guess is that since they are holding 2 mortages, they might be open to any reasonable offer. There is another house that has been up since Jan or so, and I think that right about now they would accept a good offer. Both houses are listed for about $319,000 and I think that they might be willing to go for $300,000. Hope that gives you an idea for how much you can "low-ball". We put in an offer 25,000 lower and that started the counter offers until we got to a price that was good. About 7,000 off the listed price, but we also got 2 flat screen tv's in the deal (they were mounted)

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    Junior Member funkymom's Avatar
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    You really need more info. Your agent can find comparable houses in the area and they can also find out how much that person paid for it.
    You should also be able to explain why you are offering the low price, ie. needs repairs etc.
    Overachieving underachiever

  6. #6
    Expert Forum User Wendy's Avatar
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    All I can really say is that our house is up for sale and we have gotten 2 offers that were $40,000 lower than the asking price and we basically laughed at them and refused the offer. That was just way too low, I would go about 20,000 lower to start. If we had gotten an offer that was 20,000 lower we would have started the counter offer game and see where it took us.

  7. #7
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    Always include a House Inspection request with your offer. If they accept your offer and your house inspector inspects the house and finds terrible/expensive things to fix then you can;
    a) back out of the deal
    b) lower your asking to cover the cost of repairs

    Usually, offers are $10,000 below the asking but depending on how long on the market, if it's a marriage separation, relocation move etc you might get it for cheaper.

  8. #8
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    When we bought our first house we offered 25,000 below asking thinking they wouldn't take it at all. Well......they took it!!!! The owner was married to his partner and the partner died. He was living in TO and trying to carry on with life while still trying to upkeep the house in London. He then put it on the market without cleaning it or doing any painting. We offered that low b/c it was going to take a good cleaning and I mentioned that in our offer. He accepted within the hour with no conditions. YOU offer whatever you want to offer. Don't let anyone bully you into giving a price that is too high. Remember, your real estate agent is making money off of you....they might want the price higher. At the end of the day, it is your money. Don't be afraid if someone refuses you.....you don't KNOW them...just offer what you feel comfortable with, not what someone else feels comfortable with! Hope this helps!

  9. #9
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    When we were house hunting, we offered 35,000 less on a certain house that we wanted. The sellers just threw out our offer because they thought their house was worth more. Low and behold, about a month later they came crawling back to us asking if they could accept our offer but we had already bought a house. And they actually ending up selling their house for exactly what we offered about 2 months after that.

    People usually always think their house is worth more than it is. Atleast that was our experience when we were looking.

    Just get a really good agent and they will know what the house is worth.


    "The secret to having it all... Is knowing you already do."

  10. #10
    Expert Forum User The Ultimate London Mom!
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    Quote Originally Posted by lucka View Post
    I'm just wondering, what would you say how much lower price would be OK to offer if for example the asking price is $287.000?

    We bought a house in the fall that was WAY cheaper than any other in the neighbourhood. It was in perfect condition, but hadn't had a single upgrade done to it in it's 20 years (my kitchen had flowered wallpaper circa 1987!).
    The other houses around here sell for $40-100K more than ours, depending on the renos. We figure it needs $50K to make it look that good, so we went in about $15K under their price, and resolved at about $8K under, with the home inspection.

    Before that, we had made an offer on a house, maybe $10K under, and they refused everything, wanting full price and take all their appliances, etc. Their house still hasn't sold 8mos later... suckers.

  11. #11
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    As many pp have stated, you need to speak to your agent who is able to do comparables to come up with a price that the market calls for. Also time on the market and the individual property, lot etc will also come into play when factoring a price. Good luck.

  12. #12
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    I agree with having a home inspection as part of the offer. I adjusted the offer on the house I bought based on discovery of a serious electrical hazard which the homeowners weren't even aware of. Saved me $1500 and gained me peace of mind having it fixed. Other than that my purchase price was close to their list because it was priced fairly for this neighbourhood and the market was busy. I'd missed out on trying to buy two previous houses because both sold over the list price and my offer each time was about $5,000 under. Your agent will be the one to tell you what the market is like now.
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    Well, the housing market seems to be turning into a buyers market.
    Housing sales and starts last month were down.
    When we offered on our home, our first offer was about $30,000 less than asking.
    There of course were a couple of other homes for sale in the neighbourhood, and the house we looked at had had no offers in the three months it was on the market.
    We ended up with price about $18,000 less than asking...
    There are several factors when making an offer including;
    How much work / decorating is needed. Average update of bathroom $8,000 - $10,000. Average update of a kitchen $15,000 - $40,000. Average cost of finishing a full basement $8,000 - $20,000.
    How many other homes are for sale in the neighbourhood.
    Condition of major components of the house - roof (1,200 sf roof $3,000), appliances (new $5,000), Furnace ($3,000 - $7,000), Air Conditioner ($1,500 - $3,000), foundation etc...
    Keep in mind any home older than 10 years does not have enough plugs, cable wires or telephone plugs in it... and compare to new house prices in the neighbourhood.
    Finished / unfinished basement.
    Size and condition of lot, sheds, playsets etc....

    I would offer whatever your comfortable with and not worry about "hurting the owners feelings" or low-balling them. They want to get the most amount of $$$ as they can for their property - you want to get the best deal... These two things are not compatible and during the house buying / selling process you need to do what is best for yourself and your family.

  14. #14
    Expert Forum User The Ultimate London Mom! Mommy2Cuties's Avatar
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    I agree with the previous posts. I think you should look at what the neighborhood is going for and also what repairs need to be done (ie: new roof, furnace etc) and then calculate how much those repairs will cost you and deduct a reasonable amount from the asking price.

    I used to work at a real estate office and a real estate law firm and I found that a lot of people go lower then they are willing to pay in hopes that the seller will take it, if not then you can always go higher.

    IE: how is listed for $250,000 you dont want to pay over $240,000 your first offer is $225,000 seller says no.. you come back with $230,000 they say no so you offer $235,000 they accept and you get $15,000 off asking price and $5,000 what you were willign to pay.

    Bottom line - leave yourself some wiggle room its easy to go higher but harder to ask them to drop the price. Sellers normally list their house for more then they are willing to accept anyway just for that very reason.

    Hope that helps!
    I stole Turtle's Lollipop! xoxo

    Nicole, mama to Miss A (April 2005), Miss K (Sept 2007), Angel Baby (August 2008), and Baby A (June 2009)


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