I wanted to get advice from others who been down is road before. I have a property I’m interested in that is listed for $55,000 and been on the market for 634 days. The home value is $49,000. Also the comparable homes that sold recently averaged out to $45,000. It needs a new carpet, the owner offered to put new carpet or give a carpet allowance. My plan is to bring this asking price down. I’m just wanted to know what you professionals would you do in this situation. Specifically, how would you bring the price. What will also be your counter offer strategy? Trying to learn and do this the best way I can. Thanks
@Shepard Solomon Offer what you think the property is worth based on the facts. You could put your rational together in a attachment to your offer. Make it clear this is your highest and best.
What is the worst they say? No. Then you move on to the next deal and re approach in a few months if you still have the capital.
The fact that the house has sat for over a year and a half doesn't bode well, but it could be that diamond in the rough we all hear about.
@Shepard Solomon is the home listed on the MLS? Why not use an agent? It won't cost you anything. A good agent can help you with negotiating a deal on the home as well as provide accurate opinion of listing price.
@Shepard Solomon is the seller motivated? I would question after that many days on market if they even care if the property sells or not. Is it vacant? Assuming they are living there, then they ware probably just fishing for the price they want. The problem is after a property sits on the market that long, it gets stinky. What I mean is potential buyers think it has major problems, otherwise it would have sold long ago.
If comparable homes are selling for $45,000 then I would offer $40,135. My guess is they will counter offer something. Say they offer $50,000 as their bottom dollar. Tell them you can't pay a penny over $43,878. The uneven numbers on your side are to lend credibility to the thought you put into the offer. If other comparable properties are selling for $45,000 then there is no logic in paying more than $45,000.
Other ways to negotiate could include offering a higher price with a carpet allowance. Or maybe asking for the seller to pay more of closing costs. These are two ways to get a little more out of them without the selling price dropping as much.
yes I got that, I’m just asking what would you do?
There is so much information missing here. If the property were a decent deal, it would not have been on the MLS for two years, another investor already would have snapped it up. There are either major repairs that need to be done, zoning or environmental issues or it's just not a a good deal.
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