found some land, what to offer?

Discussion in 'Homesteading Questions' started by centexguy, May 23, 2005.

  1. centexguy

    centexguy Well-Known Member

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    I found a decent piece of land a little more rural than where I am now that I would like to buy.The realestate guy says he will make any offer to the out of town seller that I want to make. The property is an old homestead with lots of improvments.
    I think the property is worth the asking price, but I am thinking of offering maybe 10-15% less. I know the seller is fairly well off and just wants to sell the place, so Im hoping he will accept a little less just to be done with it. The realator said the owner told him not to push it too hard. I take this to mean he is in no rush. Who knows. I am trying to use my current place (which will be sold) as a carrot for the RE guy to possibly encourage the seller to accept my offer. I want to be careful not to insult the seller with a lower offer but I dont want to seem overly eager either. Its hard for me to negotiate through the realator because I cant get any direct feedback. If the seller refuses the lesser offer with no counter offer, will I get the chance to offer the asking price. This property is newly consigned and hasnt even been advertised. Realestate savy folks, give me some advice.
     
  2. VALENT

    VALENT Well-Known Member

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    Get yourself your own buyer's realtor to represent you. Tell him your intentions and what you want to offer. I have tried to make offers directly to the selling agents thinking they would try harder in order to get the full commission but it doesnt always work that way. If you really like the property and think the price is decent, dont underbid too much. They will remember.
     

  3. Shepherd

    Shepherd Well-Known Member

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    You don't mention how much land there is, if there are any buildings, electric, well, etc., but you seem fairly certain the asking price is well within reason. Personally, I've bought and sold a lot of property and if for example, they were asking $145,900 I'd probably offer $117,000 to start with. See the realtor's reaction... tell him/her to try and get you as much feedback from the seller as possible. If this is property from an estate the family is trying to settle, they'd probably be glad to finish the loose ends up and distribute the money between family members. On the other hand, if the owner is out of state and not really planning on moving back, that property's a pain to hold onto. They're paying taxes, insuring it, etc.

    They can always say no to your offer - and probably will... but it sure can't hurt to find out. I'd rather start lower than higher. You'd have a lot of expense bringing in power, water or digging a well, building a home, etc. All things that will be major financial outputs from your wallet. The more you have to start with, the better off you are.

    But I always pray about any transaction like this before I make the offer... I might decide at the last minute to change my first offer to $121,000 after praying... or I might feel real comfortable with bidding $117,000. (These again, are hypothetical figures.)

    Have you toured the property well, gotten friendly with the realtor? He's your contact with the seller, so you want to buddy up to him or her. If you don't feel like you're making good enough progress, then I'd contact a well known realtor to come in on your behalf... discuss it with him/her and see if they think they can make more progress for you.

    Good luck to you, Centex!
     
  4. agmantoo

    agmantoo agmantoo Supporter

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    Determine the county property tax value for the property and offer that if you feel that the county's appraisal is accurate. That way you have a basis for your offer and can justify same if asked as to how you determined your offer. I always offer a much lower price than the asked provided the property has been on the market some time and particularly if it is not a piece I just have to have. The sellers agent is required to submit the offer but the agent may tell you that it is futile if the agent has an idea as to what the seller must have. You would be surprised at how often property can be bought way below the asking price particularly if you are prepared to close immediately. People want the money and want it fast. If the seller accepts your low offer get an offer to purchase and contract signed immediately.
     
  5. Cyngbaeld

    Cyngbaeld In Remembrance Supporter

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    I have had realtors look me in the eye and say 'that bid is too low, they won't accept'. And I said 'offer it anyway.' And they accepted. It doesn't hurt to try.

    I agree on getting your own agent. It is always better to have a buyer's agent rather than trying to work with the seller's agent. You can even find someone who doesn't ever do listings but only represents buyers. Make sure you get a property disclosure form before signing the contract and find out if it is in a flood plain. And hopefully nobody is about to start strip mining the land next to it.
     
  6. donsgal

    donsgal Nohoa Homestead

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    If this guy is a REALTOR (member of the National Association of Realtors) he is required by law to present any offer to his seller that he receives. Because he is the seller's agent he is duty-bound to have his seller's best interest at heart and that means bring him the highest offer possible.

    Just have him write up the contract for what you want to offer. Don't worry about insulting the seller. It's business, nothing more. If he doesn't like your offer he can always counter-offer with a higher price and you can take it or leave it.

    Good luck I hope you get the place for what you are offering.

    donsgal
     
  7. Alex

    Alex Well-Known Member

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    If it's a hot real estate market, like around here, offer $5,000 MORE, if you want it -- and hope you did not get into a bidding war. Some $500k downtown condo places are selling $25 to 50 k more than asking -- it's nuts.

    And on the 160 acres -- raw land, no house, fenced -- we bought for $22,000 CDN up north -- the only way we got it -- for the asking price was a neighbor-friend told us about it before it was on the market. However, even today there is a 160 acre place with house, 95 acres hay, 10 acres pines -- around the house -- $95 k CDN -- been on the market for awhile -- up north.

    Normally, however, it is good to offer at least 20% less -- or lower, then you can work up to a final price.

    Good Luck,

    Alex
     
  8. Maura

    Maura Well-Known Member Supporter

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    Make an offer, say 10% below asking. He will either accept it or counter offer. Accept his counter offer. Since you can afford the property, there's no reason to haggle over a small amount of money.

    Before bidding, find out what the property taxes will be. Call the local treasurer and ask him or her to compute what your taxes will be if you paid XXX for this property. There may be extra taxes on this property (a drain, for instance) that puts the taxes much higher than you may have imagined.