what would be a reasonable offer on this house?

[Jodi-FL]

it's been on the market for over a year. started at $405K is now at $380K, it's 35 years old and everything (with the exception of the basement which had a home theater put in 5 years ago) in the house is original (carpet, linoleum, counters, paneling, etc). there are 3 new developments in the area with comparable houses (except with unfinished rather than finished basements) for under $300K. the house is on 1/2 an acre, with an adjoining 1/2 acre next to it included (it's usually a nicely kept yard, but due to being vacant for over a year, it needs work). we can't afford to buy the whole property for their asking price, but it's right across the street from my in-laws (which we look at as a huge bonus, since we're moving back essentially to help care for them as they're in their 80s and need help but refuse to leave their house). we've thought that we could buy the house and my in-laws could buy the empty lot (it is subdivided, and they could possibly build a double garage size apartment for themselves on it).

 

but... is $300K too low? zillow says it's work $335. I know zillow isn't always correct, but in this particular area of the country it's right on the money. my in-laws know the owners (they were great neighbors for years but have moved across country) and in talking with him last week he told them to tell us to "make him an offer"

 

so....any realty in-the-know people want to give advice?

 

thanks,

jodi--moving in 4 days!

Edited December 29, 2008 by Jodi-FL
forgot to add

[Sweetpeach]

I'm not "in the know" when it comes to your market, prices etc . . . but the emotional draw of the current owners knowing who's putting in a low-ball offer may possibly soften the blow. I would assume the property is mtg-free so they may be able to wrap their heads around much less.

 

At the end of the day, an offer is just that, an offer. If you have 300k to spend, and there have been no other offers tabled for 6 months, you might have a fighting chance. Who knows?

 

Good luck!

[elegantlion]

I'm no realty expert, but how big are the lots in the newer developments? We have a similar type house. Everything is 35 years old, we have two lots that make up 3 acres. We can't even compare to newer homes in price as ours in still being updated. Our house was valued way under the newer ones due to the age of fixtures etc. So if all the other homes are under 300k, I wouldn't one that needs a total update would be worth more than that. Just my opinion.

[Mommyof4ks]

I am no expert either, just another home shopper looking for a house we can afford in a good neighborhood with enough space. We are not even considering 'older homes' these days, because the newer ones are about the same price around here and require no work. Move in and go, so if the new homes are selling for less than $300 around there I would not even give $300 for a house that needs updating unless they are willing to fix it up or pay you at closing to fix it up. We have been told to buy a house that you could at least get what you paid for it if you needed to move tomorrow, because you never know what may happen. Good luck!

[Julie in Austin]

300K is too high if there are houses that are similar but newer and priced at under 300K.

[Jodi-FL]

usually around 1/3-1/2acre each. we've moved 6 times in the past 13 years (from NY to FL) and have seen the trend in new homes get smaller and smaller lots while the homes get bigger and bigger. our realtors have told us its because "today's family doesn't want any upkeep". I can appreciate that, but with 7 kids and 2 dogs we could use the space, and we love to garden and do yard work.

 

thank you for the comments!

[Sharon in SC]

it's been on the market for over a year. started at $405K is now at $380K, it's 35 years old and everything (with the exception of the basement which had a home theater put in 5 years ago) in the house is original (carpet, linoleum, counters, paneling, etc). there are 3 new developments in the area with comparable houses (except with unfinished rather than finished basements) for under $300K. the house is on 1/2 an acre, with an adjoining 1/2 acre next to it included (it's usually a nicely kept yard, but due to being vacant for over a year, it needs work). we can't afford to buy the whole property for their asking price, but it's right across the street from my in-laws (which we look at as a huge bonus, since we're moving back essentially to help care for them as they're in their 80s and need help but refuse to leave their house). we've thought that we could buy the house and my in-laws could buy the empty lot (it is subdivided, and they could possibly build a double garage size apartment for themselves on it).

 

but... is $300K too low? zillow says it's work $335. I know zillow isn't always correct, but in this particular area of the country it's right on the money. my in-laws know the owners (they were great neighbors for years but have moved across country) and in talking with him last week he told them to tell us to "make him an offer"

 

so....any realty in-the-know people want to give advice?

 

thanks,

jodi--moving in 4 days!

 

make an offer that you can be comfortable with. all they can do is say no.

[Melissa B]

Go to the county property appraiser's website and look up what they paid for it. That will give you a good idea of what you can offer. If they only paid $150,000 then you can offer under $300,000. If they paid $350,000 it is unlikely they will want to consider much under $325,000. In a weak seller's market - how much the owner will walk away with is usually a better indicator than the selling prices of the houses around, as far as how low you can offer. Offer the lowest amount possible while still leaving the owners with a small profit and they will probably accept.

[Tap]

One thing to consider is how much upkeep you are going to have after you buy it.

 

How old are the appliances, roof, water heater. What is the electric/gas cost per month. Does it need new windows or insulation. Is the concrete driveway, porch or patio in good shape or are any roots lifting it? How are the trees, do they need to be taken down? Is it on septic or sewer. What kind of water or sewer lines are under the house...are they in good repair or do they have occasional problems in storms. Have there been any homeowner insurance claims on the house (this can affect your ability and price to insure it.) Do the bathrooms,have any lifting of the linoleum around the tub or commode? Same question for the laundry room and kitchen. How are the door thresholds? Any mildew or mold? Cracking walls or settling issues? Look at the exterior siding, is it loose or rotting near the ground? How is the paint, any peeling or cracking? Is the foundation solid? Floors level (take a marble with you)? If the appliances are needing repair (especially if they are original) , are the holes standard sizes or are they special sizes? Special sizing on appliances gets expensive fast. How is the water pressure throughout the house? Can you take a shower while the laundry is going? Is there a dishwasher? Is there a laundry room? You won't know this by looking, but is there asbestos in the linoleum, or the insulation? It will cost you a lot in recovery if you have to replace either. Is there any standing water on the property? How is the drainage? Is it in a low spot that gets threatened by a floor? Or is it threatened by a mountain beside it that can slide in a bad storm? Are there any ongoing disputes with the neighbors about right of ways on driveways or trees overhanging the property? What does the water bill run (small leaks can jack up a bill quickly)? Is there any plans by the county to improve roads, add sidewalks or streetlights...these can result in higher taxes in just a few years. How are the curtains, will they be leaving them (if you want them too) ? Are there any features of the house they are planning to take with them? A built in may be a freestanding piece of furniture that just looks built in...you will need to ask about this. What is the condition and placement of smoke detectors (it cost me $300 to add to and replace all my mothers 2 years ago)?

 

 

 

These are all major warnings that you will be dropping thousands into the house after you buy it and can all be seen in a quick tour of the home. I would start there, before you make an offer.

 

If you don't see any major issues then you may consider telling them that you don't have 380, but you feel that 330 is all you can afford. Be honest that you have reasons for wanting this particular house, but because of the house's age and immenent repairs (even if not seen they are there), and the fact that there are newer ones in your price range near by, that you won't have a lot of wiggle room on the price. Let them know you aren't tying to get something for nothing, you just only have so much you can finance. You may even go in and get pre approved so you know the exact number you are looking at.

 

If they seem to be considering it, you may want to request a full inspection (absolutely do this before you buy). It will run about $400 in our area, but it will save you thousands if they catch a problem.

 

There are going to be more repairs in an older house...it may not be today, but it is inevitable. How do you feel about doing that? Do you like projects like ripping out toilets or replacing siding? Lead paint is another concern in an older house that you may want to consider.

 

 

Old houses have so much character, but one from the 70s may or may not. Does it have charm or is it just very basic? It is worth the price in your book? I wouldn't be tempted unless I had an extra $6000-10,000 per year to put away for upgrades and repairs. I am guessing that you will want to update the flooring, light fixtures, wall coverings and possibly counter tops in the near future, do you have $15,000 extra and a willingness to do it yourself...other wise you could be looking at upwards of $30,000 for new flooring throughout and some upgrades in the aesthetics else where. Obviously you can wait if you have to but are you willing to wait? What is most important to you? To live in a home nearest your parents, where the kids can run across the street? or to live in a home that you won't have repairs on in the immediate future?

 

Quite often older houses are built more solid and there was quality wood used in the construction, but it all depends on the builder. You may even see if you can find out anything about the builder and his reputation for quality or cutting corners. There is quality in the trim, the doors and smaller details in older houses that you will have a hard time finding in modern houses for a reasonable price. So, there are things that you won't get in a new house also. But while those are important, you still have to be able to afford the house today :0)

 

 

The price of a house isn't just the asking price, there is a lot more to it. Sometimes, it is easy to get excited about a home and not look at the real price of ownership.

 

I hope that you get a wonderful house, good luck!

 

Tap

Edited December 30, 2008 by Tap, tap, tap