Basing offer of of comparables

9 Replies

I'm looking to make an offer on a townhouse that is listed at $130K but there is a comparable unit next door that sold in March for $116K (DOM 72) it was originally priced at $125K and had a price reduction to $119K.  Both units have the exact same layout although looking at the images, it looks as if the one that sold had an issue with the foundation.  Another comparable in the same community is currently under contract and was listed at $130K (DOM 30) although I don't know what what kind of offer the owner has accepted.  My question is how can I take these factors and account for them in making an offer? 

Hi Zoe. Unless you're positive there were foundation issues it's hard to say really. I always reccomend low-balling your offering price, and with that offer you can even include a note regarding the comparables and WHY you're asking for a lower price to be considered. The other one listed for $130k - does it have the same updates the one you're looking at to purchase does? Does the you're looking at NOT have any updates but yet the other one for sale at $130k does?

At the end of the day, a lot will have to do with the seller of the townhome. If they are more or less desperate to get rid of it, they're in the process of moving and need it sold ASAP, etc - these are all personal things that may be affecting the seller's decision-mkaing that you just don't know about (things like this cannot be disclosed to you unless they've given the selling agent permission to do so). So my opinion would be to definitely low ball it, but not to the point where you'd be offending the seller :)

Hope this helps some! Best of luck!

Hi Sarah,

The crazy thing is the one listed for $130K has no pictures of the inside on the MLS. It just shows pictures of the outside and the townhouse property. So I have nothing to base it off of until that one actually closes. Then I'd be able to see what it really sold at.

Exactly!  I don't want to offend the seller especially since she's been my agent.  

Although the info you provided has been very helpful!  Thank you!!!

Originally posted by @Zoe R. :

Hi Sarah,

The crazy thing is the one listed for $130K has no pictures of the inside on the MLS. It just shows pictures of the outside and the townhouse property. So I have nothing to base it off of until that one actually closes. Then I'd be able to see what it really sold at.

Exactly!  I don't want to offend the seller especially since she's been my agent.  

Although the info you provided has been very helpful!  Thank you!!!

 I hear this all the time about offending the seller. I have no idea where this comes from. It's all business - I'm not offended if someone offers me 10 bucks for my property; I just ignore the offer. I'm convinced this is something realtors just like to tell potential buyers so that they will offer a higher price from the beginning. I suppose some people would get offended at an offer, and you probably don't want to deal with people like that anyway as they are far too emotionally invested to be rational or reasonable. 

@JD Martin you're right I'm not so worried about the seller as I am offending the seller's agent since I've been working with her in finding a deal.  I'm assuming most professional real estate agents wouldn't let that get in the way.  I want to be sure I can provide facts as to why I don't agree with their listing price.

@Zoe R.

How long has your targeted property been on the market?  The psychology of a seller will change daily, which will drive the sale.  Get into escrow at or a little below the $130K then start performing your inspections peeling the onion to reduce the sales price.

Majority of people looking at property aren't buyers.  How serious are you about buying a property?

Frank

I'd make an offer that is low enough that you'll be jumping up and down with happiness if it sells for that but not so low that it won't encourage a counter. The exception is if this is a property you just HAVE to have. If it doesn't fall into that category, offer lower than you think they'll accept. If you don't come to an agreement, wait several weeks and try the same offer. It may be more interesting at that time.

@Frank R. I'm serious about making an offer but since it will be a rental, there is no emotion attached to the property.  It's only been on the market 2 days.  Most in that subdivision stay on the market about 45 days. 

@John Teachout I did just that.  Went against what the real estate agent suggested and now we'll see what happens!  

I just received three counter offers from some cheapo single family homes and need to decide if I want to budge on them. (all same seller). Maybe I need to follow my own advice.

Originally posted by @John Teachout:

I just received three counter offers from some cheapo single family homes and need to decide if I want to budge on them. (all same seller). Maybe I need to follow my own advice.

 We'll, I said no to all the counters, said the original offers were valid until further notice. I'll let that ripen a bit...and then decide what to do.

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