perhaps it depends on the purchase price to begine with? we just bought a house and bid 5% below which was counteroffered...im sure your house would be way more expensive than ours, so i dont know. if a house was 100,000 and u bid 80,000, theres no way that would even be considered. and if it was 500,000 and you bid 400,000 would that be ok? i dunno. i thought it might be 10%. we bid higher cause it was a great house and we had seen so much crap...we didnt want anyone else seeing it (they were having an open house that weekend) we still paid under asking and knew we would pay the asking if it came down to it. it was a by owner house so no realtor fees.
Anyone know anything about a trust sale of a home?
I am looking at a place in LA where you have to submit a sealed bid by the end of this month. I think I want to submit a bid that says....I will pay $5000 more than the next highest offer up to a maximum of ___________ ... are you allowed to do that (vs. just submitting a regular offer)?
I am looking at a place in LA where you have to submit a sealed bid by the end of this month. I think I want to submit a bid that says....I will pay $5000 more than the next highest offer up to a maximum of ___________ ... are you allowed to do that (vs. just submitting a regular offer)?
Bigbet, I am in the housing market right now but I am on the selling end. When I put a house on the market I will set it so that I have room to come down. For instance, I am setting the one I have right now at 108,000. I will go down to 100,000 if thats what it takes.
Remember this one qoute that has saved me tons in the past "He who speaks first, loses."
Now that may not help you in this case because he has already marked his price. However, don't be afraid to go to low. Go crazy first if you want, you never know if they are wanting to get rid of that house. How long has it been on the market? If its been awhile they may be itching to dump it. Are there other buyers looking at the house?
The last house I bought I offered the full asking amount the day I saw it because I knew there were 4 other cars there that day looking at the house. Had that not been the case I could have saved myself a few thousand or though.
It all depends on the situation, but realize with your offer you are going to have to have a $1,000 earnest check which will solidify your offer. Meaning, if they accept your offer and then you decide you don't want it. . you can say goodbye to that $1,000.
Go low first, they can always counter offer with you.
Remember this one qoute that has saved me tons in the past "He who speaks first, loses."
Now that may not help you in this case because he has already marked his price. However, don't be afraid to go to low. Go crazy first if you want, you never know if they are wanting to get rid of that house. How long has it been on the market? If its been awhile they may be itching to dump it. Are there other buyers looking at the house?
The last house I bought I offered the full asking amount the day I saw it because I knew there were 4 other cars there that day looking at the house. Had that not been the case I could have saved myself a few thousand or though.
It all depends on the situation, but realize with your offer you are going to have to have a $1,000 earnest check which will solidify your offer. Meaning, if they accept your offer and then you decide you don't want it. . you can say goodbye to that $1,000.
Go low first, they can always counter offer with you.
I see the Mrs has chimmed in on this subject, so I may as well ...
I think that 20% is a crazy number, our agent told us the general rule of thumb of 6-9% which sounds reasonable. Think about it, know one is gonna price their house 20% more then the market calls for unless it's a very unusaul situation such as the LA market, which is insane, there are no rules there. Put it this way, we were looking in the 125's range so we would cut our target shopping level at 135-140 (at the very most) + you have to take into account taxes(if you get raped like us in NY State) typical taxes in WNY are 2500-5500 for a price range of 125 and below, it's gets worse as you move up the bracket. Anyway, if your looking at 125 your certaintly not gonna look at a house selling for 150,just out of your bugdet. Let's say I'm selling a house and I'm told it's worth 130 or so, so I put it on the market for 156 or say 155 I've just eliminated alot of potential buyers... I guess it's how you feel the house will sell and the market in your area. Good luck BB .
I think that 20% is a crazy number, our agent told us the general rule of thumb of 6-9% which sounds reasonable. Think about it, know one is gonna price their house 20% more then the market calls for unless it's a very unusaul situation such as the LA market, which is insane, there are no rules there. Put it this way, we were looking in the 125's range so we would cut our target shopping level at 135-140 (at the very most) + you have to take into account taxes(if you get raped like us in NY State) typical taxes in WNY are 2500-5500 for a price range of 125 and below, it's gets worse as you move up the bracket. Anyway, if your looking at 125 your certaintly not gonna look at a house selling for 150,just out of your bugdet. Let's say I'm selling a house and I'm told it's worth 130 or so, so I put it on the market for 156 or say 155 I've just eliminated alot of potential buyers... I guess it's how you feel the house will sell and the market in your area. Good luck BB .
There is no rule for how low to ask. Some people list their houses way over market. If two identical houses are for sale and one owner asks for 800 and the other asks for 750 would you give a different offer on each house because of a 10 or 20 percent rule?
Just do a ton of research in the area to see what the true values are. Then ask below what people tell you to ask. you NEVER want to ask for too much and start negotiating from a higher level.
Just do a ton of research in the area to see what the true values are. Then ask below what people tell you to ask. you NEVER want to ask for too much and start negotiating from a higher level.
Kruser6 said:
I was thinking that since all bids have to be submitted by the 31st and are sealed till then, there would not be an opportunity for them to get a fake bid to bump mine up once they saw how it was structured?
Say for example I bid $5,000 higher than the next highest bid up to $775,000, listing is $799,000 and the next highest bid submitted is $750,000, they wouldn't have a way to get another bid packet in with a fake bid of $770,000 since all the bids are sealed...no?
But you are right that it is possible and thanks for the heads up...I need to learn more about this thing. I have a family member flying down from Palo Alto to look at the house and speak with the listing agent today.
It seems like a steal though...needs a bit of work but comprable homes in the neighborhood are going for like $550 - $600 a square foot and this one, based on the listing price is like $375 per sq ft...
I am still stressed out just thinking about it...I need like a 60 year mortgage or for my fiance to never have kids so she will make a ton of cash!
Certainly crossed my mind...was thinking it could be:
1) there is a house (based on google earth) that is snuggled up right to the back of it...look off the porch one way...beeeuuutifull...look out the other way....neighbors roof + kind of looks like a prison from the outside and needs some updating
2) since it is essentially an auction, they put the list price low to get everyone to look at it (come up in their searches) and in fact it will go for much more
3) since it is a trust sale, you have a bunch of siblings or a charity that this was left to and they just want the cash quick (I am hoping)
Either way, someone I trust very much is looking at it today so we will know whether it is worth flying out there/scrambling to sell everything I own to make a bid. I still can't believe how much houses cost out in LA!
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Bright and spacious 3+2 with city-lights views in hip XXXXXX. Moderne-style architecture with a contemporary vibe featuring walls of glass leading to a private interior courtyard and a large park-like almost-flat yard. Tlc will make this eclectic star shine. Trust sale. No court confirmation required. Offers to be written on contract provided by seller. Ask listing agent for package including required paperwork & terms of sale. Sealed offers due by july 31 at 5:00 pm
1) there is a house (based on google earth) that is snuggled up right to the back of it...look off the porch one way...beeeuuutifull...look out the other way....neighbors roof + kind of looks like a prison from the outside and needs some updating
2) since it is essentially an auction, they put the list price low to get everyone to look at it (come up in their searches) and in fact it will go for much more
3) since it is a trust sale, you have a bunch of siblings or a charity that this was left to and they just want the cash quick (I am hoping)
Either way, someone I trust very much is looking at it today so we will know whether it is worth flying out there/scrambling to sell everything I own to make a bid. I still can't believe how much houses cost out in LA!
<TABLE style="BORDER-RIGHT: #efefef 1px solid; BORDER-TOP: #efefef 1px solid; BORDER-LEFT: #efefef 1px solid; BORDER-BOTTOM: #efefef 1px solid" cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD align=middle bgColor=#ffffff>
Bright and spacious 3+2 with city-lights views in hip XXXXXX. Moderne-style architecture with a contemporary vibe featuring walls of glass leading to a private interior courtyard and a large park-like almost-flat yard. Tlc will make this eclectic star shine. Trust sale. No court confirmation required. Offers to be written on contract provided by seller. Ask listing agent for package including required paperwork & terms of sale. Sealed offers due by july 31 at 5:00 pm
#1cheater# said:
Based on history you are spot on...it is just getting in the damn market without being in the middle of 18th street gang territory that is tough. I lived off Hollywood blvd last time around and it was a great place to party but no place to raise a family which is what I have think about now....fucking responsibility!
good idea, but this is such short notice that she is just using a digital camera and taking a ton of photos (I have 11 or so pics right now). luckily she has bought a few fix'er uppers in the past and knows a lot more than I do...if it passes her test, my fiance and I will fly out there (fiance will be there next week to sit for the Cali bar exam next week).
Inspection is a good idea too, any idea what that would cost?
Inspection is a good idea too, any idea what that would cost?
The local housing market would dictate a rule of thumb for a house offer. If you are looking in a relatively quick turnover market like South Florida then offering 20% below asking price would not even get consideration. The Realtor will even get pissy as they know it is their job to submit your offer no matter how low it is.
The art of negotiations in the real estate world is not trivial and can be very complex. If you start too low you will lose your upper hand. You really have to study the local market and know the averages and the turnover times. When the market was super hot here before this year the average selling price in Dade and Broward counties were actually 1-2% above the list price. Now you would probably see that drop to about 3-4% below the list price.
Know the neighborhood, know the sales history, and know the regional averages before you consider an offer. The best offer is one that is accepted without a counter offer. Often people make the mistake of thinking well maybe you offered too much. If you offered 10 grand less they may have countered with a number higher then what you would have originally offered. In this case you lose.
The art of negotiations in the real estate world is not trivial and can be very complex. If you start too low you will lose your upper hand. You really have to study the local market and know the averages and the turnover times. When the market was super hot here before this year the average selling price in Dade and Broward counties were actually 1-2% above the list price. Now you would probably see that drop to about 3-4% below the list price.
Know the neighborhood, know the sales history, and know the regional averages before you consider an offer. The best offer is one that is accepted without a counter offer. Often people make the mistake of thinking well maybe you offered too much. If you offered 10 grand less they may have countered with a number higher then what you would have originally offered. In this case you lose.
