Made an Offer on a House
Community – I just made an offer on a house. The list price was 625 and we offered 530. They countered with 600. We countered again with 550. The realtor said the home owner is firm on 600. What do you guys suggest we do? We really love the house but convinced ourselves not to…
Community – I just made an offer on a house. The list price was 625 and we offered 530. They countered with 600. We countered again with 550. The realtor said the home owner is firm on 600. What do you guys suggest we do? We really love the house but convinced ourselves not to go above 550.
On a side note: can someone recommend a lawyer or home inspector? Its a 2 family brick house.
“$550K is about what a house should cost, in up-and-coming Brooklyn.
Posted by: Heather”
“10x annual rent, not 16-20x.
Posted by: Brownstones Half Off”
If anyone has a 1-4 family home they’d like to sell for 10x annual rent, please let me know. In a reasonably nice or up and coming Brooklyn neighborhood, I’ll be a cash buyer. Seriously, email me: bklnite@gmail.com
Ten percent off ask is pretty standard here if the house is priced fairly (in line with comps) to begin with. Do your homework, know what the type of property you are looking at is worth.
Offer what it’s worth. Walk away if the seller is not being realistic.
One other thing to consider is how much you love/and or need this particular house, and how scarce this type of house might be. If there’s something rare about this property that is of great importance to you, you might consider overpaying — if there’s competition. No need if you’re the only one who wants it.
Don’t believe anything the broker tells you.
mcKenzie & BHO, try and keep your rantings to the other threads, Your assumptions that are being pulled out of your orifices are just that. besides, mckenzie, were you asleeep and not notice that prices have corrected somewhat from 2008 levels????
Our offer that was 110K below ask was accepted. However, the inspection report seemed to indicate that the house needed 100K worth of work and we passed. My advice — find some comps that substantiate 550K, perhaps go to 575 if you feel strongly, but make sure you have an inspection contingency clause too.
I myself do think $550K is about what a house should cost, in up-and-coming Brooklyn.
The basic laws of gravity and of economics agree that what goes up must come down.
As soon as the current demented mayor spikes up real estate taxes, makes it even harder to own a private car, and makes it illegal to smoke a cigarette or eat French fries, people in larger and larger numbers will get the clue that he wants us to leave his Imperial City and move somewhere cheaper and nicer.
BHO will always say walk. Who knows … prices may go down from here and it may be good advice.
ou812 – Staten Island? I think you’re assumption is a mistake based on sebb’s comment that it sounds cheap (compared to the brooklyn neighborhoods typically discussed here). I think we’re talking about Sunset Park between 2nd & 3rd.
I don’t know the area, but a listing I found seems like a it’s on a pretty nice block of modest limestone houses. What will a 3BR rental will bring in – $1800 or $1900 a month? With rental income covering a majority of the mortgage, it would seem a reasonable proposition on the rent vs. own calculation.
“Here on Brownstoner, the assumption is that everyone is just selling their 1.5 million co-op in Manhattan and that they receive 6-digit bonuses.”
It’s also assumed that there’s no limit. Worse, they think the ceiling won’t collapse. The historic, sustainable price/income ratio is 3, not 6. 10x annual rent, not 16-20x.
Can kicked down road is now filled with concrete. Impending collapse compounded.
***Bid half off peak comps***
600 thou for a house is a lot of money. Only top earners can deal with the carrying costs.
Here on Brownstoner, the assumption is that everyone is just selling their 1.5 million co-op in Manhattan and that they receive 6-digit bonuses. There are a lot of people like that, obviously enough to overpay for ancient row houses in nabes where their neighbors’ median income is around 38,000 per year. But that is not the scenario for most Americans.
Walk. Prices will collapse again when rates spike. Rent and outsave rate hikes by putting more money down on a cheaper house. Same monthly payment or less.
***Bid half off peak comps***