How much is underbidding?

Sorry if that was confusing...

We found a home that we like. The asking price is a little bit more than we think we want to spend (unless we want to eat soup for the rest of our lives)

I just did a property search and I'm seeing the value listed on mynassauproperty.com is $73K less than the asking price. I did a comparable search in the neighborhood, and that's what all the houses w/ that size are worth....

Although it probably won't be accepted, has anyone ever underbid by $50+K ??
I love the neighborhood and have been thinking of resale as well.
So much to think about! Any advice is greatly apprecitated!!!

Michelle

I think underbidding by $50k, although I can see why you would want to after doing research, would make you lose out on the house. SOMEONE will pay the asking esp in this day and age of real estate wars.

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Posted by MrsTC

Michelle

I think underbidding by $50k, although I can see why you would want to after doing research, would make you lose out on the house. SOMEONE will pay the asking esp in this day and age of real estate wars.

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I agree, I think bidding $50k under could make you loose the house. Good luck!

$50K is a lot to underbid, but maybe the house is really over-priced, so it is a reasonable bid. Do you have a realtor? If so, ask to look at the comps to see what the homes in the neighborhood are going for. Also, if it has been on the market for a while, it is probably over-priced.

I have seen prices on homes I have looked at drop $20K to $30K, because they were over-priced and sitting on the market. One thing though, even if the home is over-priced, the seller might not see that -- so your chances of actually getting the house for that much less than asking are slim, but the sellers may negotiate with you. Our bid was finally accepted at $20K below asking, because the house was over-priced and they weren't getting what they were asking. So ya never know!

I respectfully disagree with some people and would urge you to bid what YOU think is fair for the house. Do not let the sellers drive up the prices and tell you what is fair.

Homeowners could ask whatever they want on houses and sometimes do. You have to be careful. Maybe they are just looking to see what they can get in this market on the house and are not really interested in a fair sale. Maybe they have a number in mind and know it is a reach but will sell if they get that number only.

My advice is to forget them. My husband and I poured over the comparables for days. We involved a real estate lawyer and a trusted appraiser. We analyzed the comparables and when they sold to death. We came up with one number based on that that we thought was not extremely low (although lower than asking for sure), but extremely fair and attractive. We were NOT going to negotiate- this was the offer we liked and we had our realtor represent that. The owner was reasonably pleased with the offer we made and accepted our offer.

That said, I wouldn't give a low ball offer. There is a difference. I would make a fair offer if you want the house. JMO.

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Posted by sept20yay

I respectfully disagree with some people and would urge you to bid what YOU think is fair for the house. Do not let the sellers drive up the prices and tell you what is fair.

Homeowners could ask whatever they want on houses and sometimes do. You have to be careful. Maybe they are just looking to see what they can get in this market on the house and are not really interested in a fair sale. Maybe they have a number in mind and know it is a reach but will sell if they get that number only.

My advice is to forget them. My husband and I poured over the comparables for days. We involved a real estate lawyer and a trusted appraiser. We analyzed the comparables and when they sold to death. We came up with one number based on that that we thought was not extremely low (although lower than asking for sure), but extremely fair and attractive. We were NOT going to negotiate- this was the offer we liked and we had our realtor represent that. The owner was reasonably pleased with the offer we made and accepted our offer.

That said, I wouldn't give a low ball offer. There is a difference. I would make a fair offer if you want the house. JMO.

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Great advice! I agree with you!

As you know, I gambled and went in a lot less than what they were asking and wound up after bargaining getting the house about 40K less than the adjusted asking price (I had a few factors I knew were on my size - only one other bid and we were very good to close quick - DH works for banka nd nothing to sell to hold us up and they were anxious to close very quick)...I knew what I felt the house was worth to US and wouldn't go above that. In the end it worked for us.

Be careful with the comps and mynassauproperty - I forgot to mention - I know the homes across the street are going for over 75-100K more than what I paid only a year ago for very similar houses...things change quickly - so use them as a tool not as a gospel. Also houses sold 6 months before mine went for 40K less than what I paid and had less work to be done one them.

Anyway, you also have to remember you want to place what the owner will feel is a serious bid so going too low may not even get you to the bargaining table.

I say do your homework and then go with your gut! If it is meant to be it will happen!

You know I am wishing you the best whether this is the ONE or not!!!!!!!!!!!!!!!!!

I so appreciate everyone's response!!!!

I completely understand everything everyone is saying.
Neicey- I'm thinking of low-balling, but having a limit to what WE think the house is worth and what we're willing to pay for it. I figure, if it's meant to be, it'll be.

I know the sellers had a buyer who pulled out a week before closing. The realtor tole me it was b/c they found a better house for less?? Different neighborhood though. So, nothing is written in stone, and you do never know the sellers situation. I know there is another couple interested in the property, but who knows???
I just didn't know whether they'd submit such a LOW offer, or listen to another one if the low one got rejected from the beginning.
I'm so excited to be looking, excited to have found one that I absolutely would love to 'start' off in & possibly stay in.... and then, heartbroken that it might not even be a possibility
Has anyone else had such emotions all at once? The cost would be tight for DH and I, but I'm willing to do it.....

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Posted by sept20yay

I respectfully disagree with some people and would urge you to bid what YOU think is fair for the house. Do not let the sellers drive up the prices and tell you what is fair.

Homeowners could ask whatever they want on houses and sometimes do. You have to be careful. Maybe they are just looking to see what they can get in this market on the house and are not really interested in a fair sale. Maybe they have a number in mind and know it is a reach but will sell if they get that number only.

My advice is to forget them. My husband and I poured over the comparables for days. We involved a real estate lawyer and a trusted appraiser. We analyzed the comparables and when they sold to death. We came up with one number based on that that we thought was not extremely low (although lower than asking for sure), but extremely fair and attractive. We were NOT going to negotiate- this was the offer we liked and we had our realtor represent that. The owner was reasonably pleased with the offer we made and accepted our offer.

That said, I wouldn't give a low ball offer. There is a difference. I would make a fair offer if you want the house. JMO.

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i totally agree.

in fact, some buyers will put their house on the market for the sole purpose of seeing if one will pay the asking price. they really do not HAVE TO move, but if a buyer is willing to pay top $$$ for the over-inflated-asking- price then they will take gladly take the $$$ and run to the bank.

one realtor that i spoke w/ (family friend) is SO frustrated w/ some of her co-workers for misleading the buyer and NOT encouraging them to underbid. then again, the higher the sale price, the more $$$ in their pocket.

ALWAYS look towards the future. although it is hard to predict what will happen, you don't want to be in a position 10-20 years down the road and unable to make a reasonable profit on the sale of your home. IMO, land and location is invaluable.

remember that real estate is at it's peak right now. unless you are absolutely in love w/ the house, i would not hesitate to speak w/ the realtor in re: your concerns and definetly research similar homes (style, size, year, condition, property) in the area that sold recently.

if in fact the home owner really needs to sell and not just looking to make a generous profit, they WILL negotiate w/ the buyers.

GOOD LUCK!!!!!

you really need to bid what you feel the house is worth....
mynassauproperty isnt the most acurate of places.. some houses arent worth the asking price, but your paying for the area and neighborhood that you are buying into. The best thing is to look at other comparable houses in that area(not town, but area) and see how it compares, if its appropriately priced then maybe bid 10-20 below asking and see what they counter...

we've made bids as much as $40K under. We expected a counter from the seller, and got it. A few times we agreed to a #, other times we lost the house to higher bidders, but I go in knowing how much I'm willing to pay for the house. If someone else is willing to pay more than I think its worth, they can have it.

One house we didn't bid on because their price was just ridiculous, has now dropped down $30K, and they're $70K under their original asking price!

Prices are insane out there, and like someone said, they just through them out there to see what happens...

Good luck!