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Q&A: Is my first offer decent?

Question by tiger_lilly33186: Is my first offer decent?
I am trying to buy a house that is listed at $ 190K.
- It has been on the market for 9 months
- The front and back yard have gotten out of hand, the inside has spiderwebs in almost every corner, there is a hole in the garage wall almost a foot wide
- Other houses in the area have sold for as little as $ 170K in the past year but as much as $ 220K.

Our first offer to the seller was $ 175,000 and conditional on a home inspection. Would you consider this a low ball offer or is it fair? Does it matter that the listing says “priced for quick sale” and asked for “as-is offers” only? My realtor told me that just means he is not obligated to fix non-warranty items, like doors, flooring, etc.

Is there a website that can show me the asking price of other homes that were sold in the area and what they actually sold for in the end?

Best answer:

Answer by Chris B
The way to look at is, what is the cost of bringing the property up to a pefect condition, or at least to the standard of other properties in the area.

If the price for a similar property in excellent condition is $ 220k and you have offered $ 175k then this assumes that the work would cost around $ 45k, if this is the case then yes it is reasonable, but you must be loking at like for like.

What do you think? Answer below!

U.K. House Prices Fell in April for First Time in Three Months

U.K. House Prices Fell in April for First Time in Three Months
U.K. house prices fell in April for the first time in three months and values will probably remain unchanged or decline “modestly” during the rest of this year, Nationwide Building Society said.

Read more on Bloomberg

Emerging Equity Funds Post First Outflows Since May

Emerging Equity Funds Post First Outflows Since May
Emerging-market equity funds posted the first net withdrawals since May in the week ended Dec. 22 amid concern China will continue tightening monetary policy, trimming a record-setting year for inflows, EPFR Global said.

Read more on BusinessWeek

Assess market first, Dr M tells developers

Assess market first, Dr M tells developers
PROPERTY developers must make proper assessment of the market before building properties to overcome a property bubble. Former prime minister Tun Dr Mahathir Mohamad said Malaysia was showing an early sign of a property bubble as many buildings built here were left unoccupied.

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How to Buy Your First Home with Confidence

This is an easy-to-follow, real world, practical guide to home ownership. If you apply the principles in this guide you will have a clear starting point, a solid foundation, and smoother journey from renter to home owner than you ever thought possible!
How to Buy Your First Home with Confidence

How to Sell Your House Fast to a Profesional Home Buyer Safely (First in a Series)

If the current chaos in housing and the economy all of a sudden has you seeing little yellow signs and big billboards that say, “We Will Buy Your House” you probably need to sell a house fast and may be wondering who are these guys behind the signs and can they really do anything to help.

The signs have been around for probably three decades, but like everything else, you only see the things that are of immediate importance to you.  While anyone can buy and sell houses in the United States most people only buy and sell the house they live in or expect to live in.

Buying houses without the expectation of living in them—as a business, really started to take off about 30 years ago when a number of seminar speakers crossed the county selling training in buying and selling homes for profit.

Like any business, you can expect a number of the people who buy houses to be skilled, honest professionals and others not so skilled and some—that you would want to avoid.

So the first thing I would suggest in selecting a House Buyer to deal with is call several, see who answers the phone, and see who comes out to your house and arrives when they agreed to arrive.  Not high tech, but a good start.

Who am I to tell you how to sort through these guys?  I happen to be one of them and have been doing creative real estate for two decades in Florida, was previously a stock broker and financial reporter for the Chicago Tribune.  It is sort of like going to a hacker to find out how to make your computer operation safe.

And as one of them, let me assure you there are good, competent people, who are able to raise the money it takes to buy and are knowledgeable of the way real estate works where you live.

There are also, and always, waves of new people who are learning how to buy houses and some of the people who need to sell a house fast will be helping these newcomers learn the trade.

In addition to seeing if they answer the phone and actually arrive at the time agreed for an appointment, I would want to know how long the person has been buying houses and how well they do it.  In the second installment of this series, we will look at methods of checking them out and in the third article we will be looking at phrases in the contract they offer you that you may want to avoid.

One of the biggest plusses that the best of these guys and gals will bring to the table to help you is that they have been taught that there are a number of ways to sell a house, methods that have been used in commercial real estate for years but that are rarely used in residential real estate.

I learned the use of these creative methods the hard way twenty some years ago when I lived on the East Coast of Florida and unbeknownst to me had bought a house in an area where a garbage burning incinerator was planned.  It was to be built about a mile from where my house was and when I was ready to sell the house to move to the Tampa Bay area, I could not sell.

Everyone knew of the plans when I was ready to sell and no one wanted any of the houses in my area.  I finally left the house with a real estate agent and moved while bearing the cost of two homes.

While a lot of real estate agents do not like creative real estate, my agent was knowledgeable and suggested a way to sell my house.  We were scarred, but after thinking about it we sold and it worked out fine.

There was a risk in what I did then and a risk in any creative answer to a real estate sales problem, but my experience was what  eventually sent me into the We Buy Houses business and in the next several articles we will tell you how it may help you and discuss the risks.

George Beardsley has written extensively about finance and business starting as a financial reporter for the Chicago Tribune, covering commodity futures, stocks, bonds, banking and other financial news. He was an editor for the financial publishing firm Dow-Jones, Irwin. He left the Tribune to work for Merrill Lynch as a commodity broker and owned a commodity brokerage firm in Florida. He was graduated from the University Of Missouri School Of Journalism with two degrees and was awarded the Bronze Star Medal for service as a combat intelligence officer in the Republic of Viet Nam. He has been buying, fixing and renting house in Florida for two decades and has just published a new eBook called ?911 for Landlords.? His website is http://www.1gr8deal.com.

House prices fall for first time in 15 months

House prices fall for first time in 15 months
The latest Hometrack House Price Index shows that house prices fell 0.1% in July, the first fall in house prices since April 2009.

Read more on Mortgage Introducer

House sales rise in Spain in first six months of the year

House sales rise in Spain in first six months of the year
The sales of houses and flats in Spain rose by 10.7 percent in the first six months of 2010, according to figures published by the Spanish National Institute of Statistics (INE) on Tuesday.

Read more on People’s Daily

FIRST RONALD MCDONALD HOUSE IN CALIFORNIA GOES SOLAR

FIRST RONALD MCDONALD HOUSE IN CALIFORNIA GOES SOLAR
Ronald McDonald House Charities of San Diego, Canadian Solar Inc. (“the Company,” “Canadian Solar” or “we”) (Nasdaq: CSIQ), one of the world’s largest solar companies, and HelioPower, a leading solar power engineering and installation firm, announced today a new 116kW roof-mount photovoltaic (PV) solar electric system at the Ronald McDonald House of San Diego at 2929 Children’s Way in San Diego …

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Rehberg faces first primary challengers in race for U.S. House

Rehberg faces first primary challengers in race for U.S. House
HELENA — The race for Montana’s sole U.S. House seat is more crowded than it has been in recent memory, but it’s not just Democrats seeking to unseat Republican Rep. Denny Rehberg this time around.

Read more on Great Falls Tribune