Maybe putting an offer in on a house...

[Triumph]

But how much to offer? Here's the dilly:

Townhouse central of Northern Virginia
-Looking at a 3 level, 2 bedroom, 3.5 bath (why?) with garage. No deck (uncommon), original mechanicals, original kitchen. Asking price for this regular sale is $325k
-An almost exact model 2 doors down sold last month for 310, but a couple of things: that one was a foreclosure, that one has a deck off the back, that one sold in 19 days, and that one had an asking price of 307, indicating that there was more than one offer.
-An almost exact model a few blocks away, sold last month in one day, for the asking price of $349k. WTF? Way to screw up my comparables!
-About 2 months ago, a very similar house, different model but same basic style, sold for 300k after being on the market for about a month. This one was an end unit, but it was near a big road (noise).
-A couple of non garage similar townhouses went under contract recently for prices somewhere between 290 and 325, but they are short sales.

So the comparables are all over the place. I'm thinking that I'd love to offer $305k to start, but since it's only been on the market for less than a week, they're not going to bite. I think it's worth $315k. And I might even pay $320k. But, this place has only been on the market for a week. So what should I really offer? Too low, and they won't even counteroffer, it's only been on a week. They might just say they'll wait for more offers. I guess I see it playing out like, it will eventually go for $315, which I would be willing to pay, but since I'm putting in an offer early, they'll eventually sell it for that to someone else. So how do I avoid this predicament?

 

[DrPizza]

I don't think they'd just ignore an offer of 305. Maybe you'd get it for 310. But, compared to 315, the extra 5 is peanuts.

Now, on another note, wtf? 3.5 baths with 2 bedrooms? Even you have "(why?)" Seems like a lot of wasted space. Are the similar models that you're comparing to also 2 bedroom 3.5 bath? If so, it begs the question: wtf is wrong with you Virginians? Do you go to the bathroom more often than the rest of us folks?

 

[Triumph]

lol, yeah I don't understand it either. It's in the basement, other models don't have it, it looks original to the house (1996), I've thought about knocking it out. Typically you don't remove bathrooms cause it helps when you go to sell. But honestly, I don't think anyone would even notice!

Now as for the money, what do you mean, "the extra 5 is peanuts"?

 

[KillerCharlie]

5k is peanuts compared to 600k (which is about what you pay over 30 years). 5k on a 300k loan is about $30 more a month. I'm hoping to buy a place before the end of April for the $8000 credit, but I'm not even letting that rush my decision. Getting the right place is much more important.

In this market, starting with 305 on a place listed at 325 is not considered bad or rude at all. Go for it - the very worst they'll do is say no. It's hard to say what the owner's situation is. In some cases they could immediately accept 305 and in some cases they'll only take 325 and not a dime less. If they don't counter offer, go for 315. Of course you'll want to get them to cover closing costs.

All of this is what a good real estate agent is for.

Oh, and 3.5 baths is ridiculous. I can understand 1 bathroom per bedroom plus 1 for guests, but ANOTHER toilet? Four toilets and two beds?

 

[Red Squirrel]

I would try your offer, they might counter offer and it will still be lower then what they're asking for.

When I bought my house I ended up going from like 189 to 165! I offered 160 and they countered 165. I think I got pretty lucky mind you, not often can you low ball like that and actually get it, and in my case I think it had only been on the market for like a week.

As for the bathroom, if you don't think you'll actually need all those, just change one into something else. That's space you could use for an extra room, storage, etc. If you are planing to live there, no point in immediately thinking about resell value unless you do have plans to sell in a few years or something. Not to mention 2.5 is still pretty good. Just because you never go in one, does not mean you don't have to clean it! I hate cleaning bathrooms, that's why I removed the half bath that was in my house when I bought it. I'll make a full one later on when I do the basement properly. They had half assed it and it got all moldy.

 

[wiredspider]

Start low and go higher. If you start high, you can't really go back down

 

[Hacp]

lol, yeah I don't understand it either. It's in the basement, other models don't have it, it looks original to the house (1996), I've thought about knocking it out. Typically you don't remove bathrooms cause it helps when you go to sell. But honestly, I don't think anyone would even notice!

Now as for the money, what do you mean, "the extra 5 is peanuts"?

Master bath and general bath I can understand, but why is there a half bath downstairs if there is already a bath in the basement? Doesn't make sense. You should probably knock down the half-bath and keep the one in the basement.

 

[Sasiki]

5k is peanuts compared to 600k (which is about what you pay over 30 years). 5k on a 300k loan is about $30 more a month. I'm hoping to buy a place before the end of April for the $8000 credit, but I'm not even letting that rush my decision. Getting the right place is much more important.

You have to have a signed and accepted contract prior to the end of April. You must close on the property by the end of June.

 

[KillerCharlie]

You have to have a signed and accepted contract prior to the end of April. You must close on the property by the end of June.

Yes, but that still only gives about 3 weeks to put an offer in.

 

[Sasiki]

Yes, but that still only gives about 3 weeks to put an offer in.

32 days left. We would have closed on our house 20 days after making an offer. There was a slight issue with the way the title was set up though so hopefully we will close this coming week, about 25 days after making an offer. A signed contract doesn't take long to get. Look at a house, make an offer, have them accept it and there is your signed contract.

 

[mshan]

You should really ask your realtor about proper bidding strategy.

If you think there is competition, but not full price offer, I'd say offer $310 right of the bat. That gives you $5000, even $10000 if you really think this is the perfect property for you, of wiggle room in terms of counter offers.

 

[RagingBITCH]

I don't understand why you don't ask the expert - your realtor.

 

[Triumph]

I don't understand why you don't ask the expert - your realtor.

I have, obviously. What's wrong with asking AT? Besides, no matter how nice a guy your realtor is, it is always in his best interest for you to pay more.

 

[JEDI]

But how much to offer? Here's the dilly:

Townhouse central of Northern Virginia
-Looking at a 3 level, 2 bedroom, 3.5 bath (why?) with garage. No deck (uncommon), original mechanicals, original kitchen. Asking price for this regular sale is $325k
-An almost exact model 2 doors down sold last month for 310, but a couple of things: that one was a foreclosure, that one has a deck off the back, that one sold in 19 days, and that one had an asking price of 307, indicating that there was more than one offer.
-An almost exact model a few blocks away, sold last month in one day, for the asking price of $349k. WTF? Way to screw up my comparables!
-About 2 months ago, a very similar house, different model but same basic style, sold for 300k after being on the market for about a month. This one was an end unit, but it was near a big road (noise).
-A couple of non garage similar townhouses went under contract recently for prices somewhere between 290 and 325, but they are short sales.

off the lowest comparable you find, which in your case is $290k and go from there.

just flat out tell them this is what one of your comparables cost.

 

[Triumph]

I guess my concern with your approach, Jedi, is that they'll just say no, not even counter offer, then sell it to someone else later for 315, which is what my max bid really is. Then I'm left with nothing.

 

[Triumph]

I put the address in Google and found this:
http://www.vafirenews.com/2009/10/centreville-townhouse-fire/

How does this bode for me? I'd be inclined to think this is like buying a car with a salvage title.

 

[ProfJohn]

It is a 3 level house with a bathroom per level and an extra for the second bedroom? Why is that so strange?

Very typical around here with all the 3 level town homes they building.

BTW I am paying $220 for a house, thank god I don't live in N. Virginia because I'd be stuck buying a little ass town home I bet.

 

[JEDI]

I guess my concern with your approach, Jedi, is that they'll just say no, not even counter offer, then sell it to someone else later for 315, which is what my max bid really is. Then I'm left with nothing.

if your not willing to walk away...

 

[Imyourzero]

Oh, and 3.5 baths is ridiculous. I can understand 1 bathroom per bedroom plus 1 for guests, but ANOTHER toilet? Four toilets and two beds?

Why is this so hard to understand? It's simply contingency planning for a worst-case scenario, and I'm not even talking about one of the bathrooms having plumbing problems. It's not hard to imagine a scenario where a couple and their guests go out to eat at the new Mexican restaurant in town, and everybody's bellies are a-bubblin' during the entire car ride home. "Oops! Oh...what's that smell? Can you speed it up a little, honey?" Car arrives home and pulls into the closest available space to the door; everyone jumps out with the car still running, etc. Thank GOD someone had the foresight to put that extra half bath in there along with the other 3, eh? Obviously, there are some times where you just can't wait to go.

 

[mugs]

Master bath and general bath I can understand, but why is there a half bath downstairs if there is already a bath in the basement? Doesn't make sense. You should probably knock down the half-bath and keep the one in the basement.

Don't do this. When you have guests over you don't want to have to send them down to the basement to go to the bathroom.

I wouldn't take the bathroom out of the basement either. If you use the basement it'd be nice to have down there, and the extra space isn't going to make that much difference.

 

[Triumph]

Bathroom issues may be moot, I think the recent fire damage is a more pressing matter. This seller is trying to dump the house after the fire damaged was "fixed," leaving me, or whoever buys this house, to be the person who actually finds out if it was REALLY fixed. Water damage is pretty pervasive...

 

[ProfJohn]

Then walk away, there are lots of other houses out there.

It is still a buyers market.

 

[MJinZ]

It's going to be a buyer's market for like 10 years.

 

[iGas]

The house is only worth what ever it is sold for, therefore you should be able to offer at what ever price you are comfortable with.

It may offend the seller if you low ball them, but it doesn't hurt to offer 300K~305K and see where the seller take this.

I wouldn't sweat it, because most if not all, house insurance pay for fire/water damage, and it is likely that the work is done by reputable contractors.

2 bedrooms with 3.5 bath is very odd, unless the original plan was for at least 3 beds.

 

[Triumph]

I wouldn't sweat it, because most if not all, house insurance pay for fire/water damage, and it is likely that the work is done by reputable contractors.

Right, but like a car repaired after an accident, even if done by a reputable firm, if the accident was bad enough, there's always remnants. And I have no way of knowing if the work was done by a reputable contractor. Or is there a way of knowing?