House question- offers?

Okay, so we found a house this weekend that we really like, it has everything I was looking for blah, blah, blah... what is the usual offer that people give from the asking. They are asking 184 and we know that the house was sold 3 years ago for 177. The market is pretty good here and the homes are going fast with so many residents moving in and out. I faxed the purchase agreement (before signing and offering anything) to my uncle who is a title lawyer to make sure everything looks good to him.

So, what is a normal first asking price?

Our closing costs are 3%, is that pretty normal?

I hate feeling stupid about things but we've never bought a house before. Thank goodness for my uncle!

Any advice would be helpful!

[DCJenn]

Re: House question- offers?

1) Are you splitting realtor fees? That's common practice in DC but not Texas. If they're paying the full 6%, you may be able to offer less cash but negotiate paying part of the realtors fees. (or vice versa)

2) Are the appliances going to convey? Again, in DC they typically do, in San Antonio, they don't. If NOT, factor in having to buy all new appliances.

3) It doesn't sound like they have much wiggle room. I wouldn't under-offer on a house. They may have it priced exactly right to avoid the back and forth BS of negotiating.

4) Bottom line, if you like the house, and you feel that it's reasonably priced, even in this market, don't wait too long. It's better to get an offer in and then negotiate.

Jenn

[SuzySunshine]

Re: House question- offers?

I have heard in this market realtor fees/closing costs are really the only wiggle room. Like was said they're probably taking a loss but the market here also moves fast, so you have to keep all of that in mind too.

ETA: We lost a house we really loved that we bid list on, the good houses here go for what they're listed at usually. What did E suggest you offer?

[Vanquisher]

Re: House question- offers?

This is 4 years ago, but when we bought our house we paid asking price and asked that they cover all closing costs. They had to pay all the realtor fees and everything, but they did get their asking price. It worked out for us. :huh:

Re: House question- offers?

She didn't suggest anything. I think it was because the seller was represented by the same company... so it's a conflict? I have heard so many different things, a few saying to offer 180... also, the seller is an anesthesia resident as well... do you think that matters? Like they might take pity of us!!!

[SuzySunshine]

Re: House question- offers?

I sent you an e-mail but I think if they're paying the 6% like Lily said they're losing money, so yes if they got two bids they're more likely to pick you b/c you're also a resident but only if the bids are the same.

Our seller did pay our closing costs like Heidi said, so that might be an option as well.

Re: House question- offers?

DH and I JUST went through the same thing you are going through 2 weeks ago. We are just waiting for our closing day! YIPPEE!!!

Anyhow...we had put an offer in for 1 other house, in addition to the one we actually had accepted. What we did was have our buyer's agent do comparative market analyses for what similar houses in the area sold for over the past several months. That way, he could find out whether or not the seller was asking more than they should. Basically, for both of our offers we just offered what we thought the house was worth, minus any MAJOR work that might need to be put into the house (i.e. new roofs, windows, etc.). For instance, the first house we offered on was listing at $159,900. According to our analysis, that was about $5000 higher than other similar houses selling in that area. We ended up putting an offer in for $150,000 plus closing costs, and a home warranty. Needless to say, they rejected our offer, counter offered, and we walked.

But for our second offer, we were competing with another person for bidding on it. Therefore, we were conservative. The asking price was $149,000 but in almost MINT condition (older couple owned it for 37 years and were extremely anal at the upkeep!). We just offered $140,000 and they accepted our offer over the other person.

Anyhow, I wish you good luck with your offering and hope everything works out for you.

Amy

[Deebs]

Re: House question- offers?

We sold our house last year in Rochester (too bad we're a year off - it was a great house). We basically broke even after realtor's fees, and were happy with that, so I wouldn't be at all alarmed if the sellers don't seem to be making a profit. Also, when we bought there we negotiated to have the sellers pay closing costs, but in that area, it is more traditional for the buyers to pay them. I agree with Cheri - this is probably the most likely area for negotiation. The market in Rochester definitely ebbs and flows with Match Day. Last year, most of our friends' homes remained on the market into the summer because the market had cooled compared to previous years. While the market there hasn't bottomed out, it is definitely a buyer's market. You probably won't be able to get something for nothing, but IMO, it would not be foolish to make an offer that you're prepared to walk away from. There should be other homes available. Good luck! You're moving into a great city.