Timeline for Making an offer on a property - go in at market price?
Current License: CC BY-SA 3.0
21 events
| when toggle format | what | by | license | comment | |
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| Jul 30, 2012 at 23:37 | answer | added | KeithS | timeline score: 8 | |
| Jul 30, 2012 at 14:48 | history | edited | RoboKozo | CC BY-SA 3.0 |
select a correct response and added an update
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| Jul 30, 2012 at 14:46 | vote | accept | RoboKozo | ||
| Jul 28, 2012 at 12:54 | comment | added | kdgregory | @Chelonian - it all depends on the local market. In the US right now, it's generally a buyer's market, even in areas that haven't been hit by waves of foreclosures. I'm not saying that your friend did anything stupid, but it's important to know the market conditions before you place your offer -- and more important, have a target price in mind. | |
| Jul 27, 2012 at 17:17 | comment | added | Chelonian | For what it's worth, I know a person who now bought two properties in a major urban area with these facts: the first, for a $550k condo, he offered $25k MORE than was asked (!) to try to head off a perceived bidding war (suggested by the realtor...hmmm...), the 2nd he offered asking price but then did enter one round of a bidding war so submitted his best offer, then the seller accepted it if he increased by another 15k! (which he did, and he's happy as an owner now). So, perhaps count yourself lucky--it could be even worse than not getting below ask. | |
| Jul 27, 2012 at 15:06 | history | edited | RoboKozo | CC BY-SA 3.0 |
typo
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| Jul 27, 2012 at 13:42 | answer | added | Scott Lawrence | timeline score: 4 | |
| Jul 27, 2012 at 13:35 | history | tweeted | twitter.com/#!/StackFinance/status/228845961328332801 | ||
| Jul 27, 2012 at 9:58 | comment | added | user | The fact that this was your opening offer and it was "quickly accepted" makes it sound to me like you offered more than the seller really expected to get. That is, above expected market value. Of course, now that you offered it, it has become market value for that particular property. Objectively speaking, $375K is quite a chunk of cash. (How many years of after-tax household income does that correspond to? How many years of work for paying it off with money left after other necessary living expenses are covered?) | |
| Jul 27, 2012 at 9:46 | answer | added | tp9 | timeline score: 3 | |
| Jul 27, 2012 at 9:25 | answer | added | gef05 | timeline score: 7 | |
| Jul 27, 2012 at 6:06 | comment | added | John Lyon | @Joe.E This site puts the vendor discounting rate at 7.2% for sales in the last month. Same here. Interestingly, the discount has fallen recently but time on the market has increased (i.e. sellers are being stubborn). The underlying data comes from RPdata which is a fairly reputable company in Australia. | |
| Jul 27, 2012 at 5:59 | comment | added | Joe.E | @jozzas : have you got a source for this figure? [not saying i don't believe it either, but i am curious as the source] | |
| Jul 27, 2012 at 5:17 | comment | added | John Lyon | In Australia, the average sale price is 8% below the offered price. Not sure how it works there but practically nobody simply says "Yes" to the market price. I'm inclined to think you could have had the place for at least $10K less. It would have been worth a try, anyway. | |
| Jul 27, 2012 at 3:46 | comment | added | Dilip Sarwate | @Robodude Read the fine print on the offer to buy; maybe you agreed to pay a penalty for cancellation of offer to buy. A standard way of handling this is via earnest money (usually a thousand dollars or more) put into an escrow account. I have not heard of offers without earnest money being put into escrow, but things can be different in different areas. | |
| Jul 27, 2012 at 3:15 | comment | added | RoboKozo | @DilipSarwate our offer was accepted, but now we are really hesitant. Because we haven't given any money to anyone yet, we can still back out freely, right? | |
| Jul 27, 2012 at 3:13 | answer | added | Joe.E | timeline score: 10 | |
| Jul 27, 2012 at 2:48 | comment | added | RoboKozo | For us. The agent was recommended by the lending company and this was a property he recommended by him. However the seller has their own agent. | |
| Jul 27, 2012 at 2:41 | comment | added | mhoran_psprep | Did the agent work for you or for the home seller? | |
| Jul 27, 2012 at 2:33 | comment | added | Dilip Sarwate | Whether you made a good offer depends on far too many local factors that you know better that anyone else. If you are putting 20% down (say) and the house appraises for less than the purchase price, you won't get loan approval. You can withdraw your offer if you are willing to forfeit the earnest money you put into escrow. Alternatively, if the offer is contingent on the house passing inspection by your home inspector or termite inspection, or if it is contingent on your getting a loan approved within 30 days etc, then hope that one of these gives you an out for backing out of the deal. | |
| Jul 27, 2012 at 2:22 | history | asked | RoboKozo | CC BY-SA 3.0 |