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Started By
Message
How much should I offer?
Posted on 6/14/17 at 2:29 pm
Posted on 6/14/17 at 2:29 pm
So I am renting a house that the landlord wants to sell within the next 6-8 months. I'm interested in making an offer on it and so as to potentially avoid realtor fees, I paid to have it appraised so I could make the owner an offer directly. House appraised for $400,000. Landlord bought it 8 years ago for a steal at $220,000.
What ya think I should go in with as initial offer?
What ya think I should go in with as initial offer?
9
Posted on 6/14/17 at 2:33 pm to Neauxla
knowing the information you just offered to us, and nothing more.....
$400,000
$400,000
Posted on 6/14/17 at 2:33 pm to Neauxla
I went through the same exact thing last year. He wanted 400, I countered at 320, we met in the middle at 360. Ended up appraising for 410, but he never found out about it.
How good of a relationship do you have with the landlord? Just throw a low ball number out there like 340-360 and see how he reacts.
How good of a relationship do you have with the landlord? Just throw a low ball number out there like 340-360 and see how he reacts.
Posted on 6/14/17 at 2:48 pm to Neauxla
I'd start at like 350K to see what happens. As the buyer, the realtor fees don't have much to do with you. If he saves 6% fee on a 400K house, that would net him 376K. So that might be my high point.
Having said that... how hot is the market you are in?
Having said that... how hot is the market you are in?
Posted on 6/14/17 at 2:51 pm to Neauxla
quote:
Landlord bought it 8 years ago for a steal at $220,000.
Eight years ago the market was at a low across most of the country. He took a calculated risk and it's paying off. I'd hardly call that a steal.
Posted on 6/14/17 at 2:54 pm to KarlMalonesFlipPhone
quote:We're actually friends. I just never see him anymore.
How good of a relationship do you have with the landlord? Just throw a low ball number out there like 340-360 and see how he reacts.
Posted on 6/14/17 at 2:57 pm to Neauxla
quote:
Neauxla
quote:
We're actually friends. I just never see him anymore.
If you want to stay friends don't lowball him. Make a reasonable offer. He didn't gamble on the house to give a deal to a friend. He gambled to make bank down the road.
Posted on 6/14/17 at 2:58 pm to LSUFanHouston
quote:. Right, I understand he pays the fees. But if he doesn't have pay a 6% fee, he can sell it to me for 6% less.
I'd start at like 350K to see what happens. As the buyer, the realtor fees don't have much to do with you. If he saves 6% fee on a 400K house, that would net him 376K. So that might be my high point.
Having said that... how hot is the market you are in?
It's a pretty hot area. Smaller houses that are turn key are selling for 500-550. This house is definitely livable but needs about $100k of work.
Posted on 6/14/17 at 3:05 pm to Neauxla
quote:
But if he doesn't have pay a 6% fee, he can sell it to me for 6% less.
Or he might want to sell it for full value and pocket the extra percentage.
I'd make a fair offer but ask for concessions. Ask for money for closing costs. Ask for repairs. You can still get value by getting repairs done that you'd be paying for after closing out of your own pocket.
Posted on 6/14/17 at 3:09 pm to Neauxla
I wouldn't offer anything until he tells you what he'd like to get for it-
just lay out what you said-that you are interested and would like to potentially save both of you a few bucks by leaving realtors out of it.
He could say 320,000, and he could say 450,000.
just lay out what you said-that you are interested and would like to potentially save both of you a few bucks by leaving realtors out of it.
He could say 320,000, and he could say 450,000.
Posted on 6/14/17 at 3:43 pm to Neauxla
Realtor fees are 6% so at least 6 percent lower than the appraised value. Since you have been there i would start at 350. Easier transaction for both yall
Posted on 6/14/17 at 4:17 pm to Neauxla
About treee fiddy.
Maybe the first time in the history of TD that this is a serious response
Maybe the first time in the history of TD that this is a serious response
Posted on 6/14/17 at 4:28 pm to JetFuelTyga
quote:
About treee fiddy.
Maybe the first time in the history of TD that this is a serious response
Posted on 6/14/17 at 4:45 pm to Neauxla
How long have you been renting? May be worth discussing if he would consider that money when considering what he'd be willing to sell to you for.
Posted on 6/14/17 at 5:13 pm to TheBoo
Deleted, misread previous.
This post was edited on 6/14/17 at 5:14 pm
Posted on 6/14/17 at 6:33 pm to raw dog
"I wouldn't offer anything until he tells you what he'd like to get for it"
Bingo!
Negotiating 101:
First one to mention price loses.
Bingo!
Negotiating 101:
First one to mention price loses.
This post was edited on 6/14/17 at 6:40 pm
Posted on 6/14/17 at 6:40 pm to VABuckeye
quote:
Or he might want to sell it for full value and pocket the extra percentage.
Split the savings and you both win.
Posted on 6/14/17 at 7:46 pm to Neauxla
quote:
. Right, I understand he pays the fees. But if he doesn't have pay a 6% fee, he can sell it to me for 6% less.
No.
You don't get to save the entire 6%. You can save the 3% that would be paid to your realtor.
He can still sell it by owner to a person with a realtor and still save his 3%.
You only get one side of the deal.
This post was edited on 6/14/17 at 7:47 pm
Posted on 6/14/17 at 9:21 pm to SECdragonmaster
I'd want him to come up with the first number
Posted on 6/14/17 at 10:42 pm to bobaftt1212
Never, Never, Never make the first offer.
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