There's a house I'm considering that has a listing price of 139,900. It's been on the market for 6 months with no price adjustment. Most other homes in the neighborhood are around 125 - 150k as researched on Zillow.com. Question is, since it does need some electrical work and in 3 years or so, a roof as well, how "low" could I go with this price without being insulting. I was thinking around 115,900 as an offer, but would such an offer be considered flat out rude?

Thanks for any input related to this topic.

 

Rude? Hardly.

I would hit them at 99,000 and try and get it for 105-110 unless things are really selling there.

Depends on the market, but Illinois isn't setting the world on fire with housing.

You have some pretty serious coin in expenditures facing you.

 

I'd personally go at least 20% below the listed price.

Most "experts" are saying that the housing market is still overpriced on average by 20-25%.

I'd do what Patdaly suggested.

There's always the flip side that one could argue that even asking ~$140K for that house is "rude." Maybe the people selling it need a little "rude" awakening

 

I was once told, If you arent embarassed to make the offer, it isnt low enough,

It costs nothing to put a offer in. I agree with everyone above,

 

It needs electrical work and then a roof in 3 years. Take a rough estimate of reroofing and the electrical upgrades cost, then get a true picture of housing market in your area. If you subtract the repairs and the market condition you come to a real value. Make the seller aware of your research and your interest will be reflected in the price offered. It gives the sellers a true picture of what their up against whether they sell to you or someone else. And since you've made them an offer based on facts rudeness isn't an issue.

 

Thanks to all the thoughts offered so far. I would intend to get as close an estimate on these as I could, so for example replaced the 100amp Federal-Pacific fuse panel with a new 200 amp service, having a service drop run, and then installing gfci's in the bathrooms & kitchen as a required first step. Then running the wiring with groud as the second phase of updating. House already has a brand new York 95% eff furnace and A/c condensor & compressor. The roof will last for a while yet, but it's partial hip won't be too difficul of a change, would likely upgrade to architech-type shingles so it'll be a little more than they would want to hear.

115,900 works out to around 82.5%. 112,000 is right at 80%. I may try to go a little lower (just a little embarisment to start) and go from there. I have one other house to look at before I get more serious, just rying to get a feel for the numbers part first. Thanks again!

 

I had a friend put in an offer on a house. The place needed some repair, so he figured out what it would take and made his offer. The seller rejected the offer and told him "to come back when he wanted to make a serious offer".

In a couple of weeks, the seller actually came back to him asking if he was still interested for $1000 over his offer. So apparently the offer wasn't so crazy after all...

 

Had a person low ball me on a offer for a house, countered back 1K over asking. Figgured I'd rent it or let the bank have it before I'd take his offer. At that point I would not have sold to him for even a nickel under asking. Figgured he was just trying to buy cheep and do a turn over, dont have time to deal with people like that.

Had someone do the same thing on equipment I had for sale, drove 2+ hrs to look at it, I had given a 100% accurate description. When he looks at it he says ok, what do you really need. Reply was since your asking, price qouted on phone +500, or do you want the phone price? He took phone price.

I dont like to dicker, but maybe you can tell that. The older I get the less tolerent I get.

DuaneW.

 

DuaneWKKC - I can apprecaite your point, and if the house had only been on the market for one or two months, I would probably have a different attitude. It's been six months and things aren't looking too good in the market rigth now. That and the fact that there's only so much I can afford allowing for the repairs and work it will need. Perhaps it would be wise to indicate on goods you sell "Price is firm" as unless that's indicated, I will most often barter on price within reason. I would not buy from someone who tried to up the price on me! Did your Dodge dealer sell your Dodge truck to you at Sticker Price, or did they raise it when you made an offer?

 

When I first moved to Texas.. (late 80's) after the Oil crunch, I was told by a local business man to offer 30% below the asking price. House I bgt had been on the market for a yr and we got it at that offered price.........AND there was nothing wrong with the house!!!
You can always come up but.....
BE bold and embarrassed! Why not at least give it a try?

It probably won't work on a new listing but....who knows in this market?

RJ

 

I guess I'd make the low offer.

If the person isn't in a hurry, or has the resources to keep it as a rental or whatever, the worst that could happen is he'll say "no" and tell you to go away...

On the other hand, if the guy is getting into a bind, or is thinking values are going to continue to drop, maybe he'll counter with a price that both of you would be happy with, or maybe he'd even take the low ball price.

 

When it was a sellers market they certainly weren't afraid to be rude with the asking prices.

Sorry, in this market, and looking long term at this area, 99 may be too high to start.

We are not that far from you, and right now I can buy a house that sold for 269 for way under the 169 asking price. There is another home where asking is 130 and if they do not accept my friends offer of 75 they are going to lose it.

Every market is different, but the run up in prices in Illinois has not only stopped, it has dumped in this area at least.

Perhaps there are more jobs in Peoria.

 

I did a job a little over a month ago for a guy who was going to sell a house, which had a previous life as a rental. I did over 4k of work, replacing windows, toilets, light fixtures, drywall repairs and painted the whole place. The house wasn't very big and in fact should've been burned down. The whole neighborhood was the same. All the houses were not built up a little and when it'd rain water would stand in the vents and ductwork which was molded in the slab. They just weren't built of the highest quality. The guy was saying he could get 120k for it, and even with all the work and new windows knowing what I know I bet he doesn't see over 75-80k. People are still asking way too much. I didn't say anything to him about it, I'll just let him have fun trying to sell it for that.

 

Go ahead and low ball, But be NICE about it. Tell them you really like the house, BUT.
If you just go in and throw down a low number, they may get mad and close you out.
Back in 2000, I built a house to sell. I listed it for 125,000. It was well worth the 125,000 since other new homes without all my extras were going for the same price. Anyway, I had a guy come in and tell me that the most HE would offer was 115,000. I said "Have a nice day !"
I ended up selling it 60 days later for 120,000. Now if this guy was a little more tactful about his "offer" I may have sold it to him for 117,500 and saved 60 days of interest for myself. But I did NOT want to do ANY dealings with such an arrogant ahh0ftkghjk.

 

Theres always room for counteroffers.

Its usually safe to say if the house has been on the market that long without a price move, they arent going to take a lowball cause they are in no hurry. Chances are they owe just as much on the property as the asking price and I dont know a single person that would love to sell something and walk away with a loan for $40,000 and nothing to show for it.