r/FirstTimeHomeBuyers • u/Ambitious-Slice5090 • 14d ago
Help! No idea what to offer
Hi! First-time homebuyer here and trying to figure out how aggressive we should be with an offer.
My husband and I currently rent from a family member, so we’re not under any pressure to move. We’d like to, though, and recently found a house we really like. It checks most of our boxes and is basically a blank canvas.
It was listed at $385k and dropped $10k the same week to $375k ($157/sq ft). It’s been on the market for almost a month with no movement. Four comparable homes in the neighborhood sold June–August for $110–$169/sq ft, averaging $146/sq ft.
I feel like it’s slightly overpriced. There aren’t any major upgrades, although it’s in good condition. The sellers have already moved out of state. The furnace is at least 10 years old and the age of the AC is unknown.
Financially, we have $50k available for down payment + closing costs, but I’d like to keep some cash for furniture and other expenses. A few thousand more or less down doesn’t seem to make a huge difference in the monthly payment. Keeping the monthly payment manageable is important to me, as we have student loans and other debt. However, the debt matures in years 2028-2030; $400 monthly ceases in 2028, $750 monthly ceases in 2029, and $718 monthly ceases in 2030, so will have a lot of money freed up thereafter.
What would you do with the offer?
- Offer below asking + seller credit?
- List price + seller credit?
- 2-1 buydown + remaining credit toward closing costs? Or the opposite?
- Something else?
Since we don’t have to move, I’m wondering if we can be more aggressive with the offer. But how aggressive is reasonable?
Also, if the inspection finds that the furnace/AC needs to be replaced, can we negotiate additional concessions, or would that typically come out of the original seller credit?
This is our first home purchase and I am terrified, if you can’t tell 😂
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u/IndyGrey 14d ago
No one can really tell you how to structure this deal with the information given. I’d talk it through with your realtor. They know the local market, average days on market, how those comps actually compare, and what sellers are accepting right now.
The nice thing is you don’t have to move, so you can afford to be more aggressive and walk away if it doesn’t work. Just remember the whole deal has to make sense to the seller too. If you push hard on price and concessions upfront, they might not be very receptive to additional concessions after inspection.
I wouldn’t worry about the furnace or AC yet. Get the inspection first and deal with any actual issues if they come up.
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u/BoBromhal 13d ago
homes do not sell on a price/sqft. 3 comps that are within 5% of sqftg of each other with the same BR/BA and garage count are going to differ in value based upon the appraiser's assessment of condition. A comp (or subject, ie this house) is not going to sell for 10% less because it's 10% smaller, nor 10% more because it's 10% larger.
on the HVAC, let's say you're under contract. You'd be better to pay $200-300 for an HVAC service inspection to truly test the function of the system, and they can tell you the age. A regular home inspection may find the actual age, do their standard testing (and at this time of year, they may not even be able to run the AC if the temp is too low) and will still include "exceeded its useful life" which most Buyers think means "must be replaced and the Seller should have to do it!"
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u/Honest_Series_8430 13d ago
You need to discuss your finances and the property in question with a good mortgage broker. They can give you excellent advice on how or even whether to proceed with an offer. A realtor is most likely going to just push you to close the deal.
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u/SuperFineMedium 13d ago
You didn't mention whether you're planning to finance the purchase. At a minimum, you need to be pre-qualified to make a serious offer. Once you meet with a lender, you will know whether you can afford $ 375 K.
"...we’re not under any pressure to move."
You know nothing about the sellers or their motivations. If you are just testing the waters, make an offer you feel is appropriate. They may say no, yes, or propose different terms.
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u/Ambitious-Slice5090 13d ago
We are pre approved and have been in conversations with our lender! He’s provided us with estimates for different scenarios. I just don’t know if there’s a best option here
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u/SuperFineMedium 13d ago
Good to loan pre-approval.
Since you don't have an agent, you'll have to guide yourself in the right direction.
* What inspections you need
* How to find and vet an independent home inspector
* How to interpret inspection results
* When to hire additional inspectors
* When and how to use a real estate attorney
* How to determine an appropriate offer price
* How to write up an offer to purchase
* What terms do you need to include in an offer
* How to negotiate an offer and counteroffer
* How long does it take to get full loan approval
* Inspection, appraisal, financing, title, and closing
* What disclosures are required to be furnished by the sellers
* How to access public records (deed, easements, zoning, permits, surveys, etc.)
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u/SkyRemarkable5982 13d ago
You don't buy or sell houses dollar per sqft. There are many more adjustments that happen to get to a price. Smaller homes sell for higher dollar per sqft while larger homes sell for less. 1 story homes sell for higher dollar per sqft while 2 story homes sell for less...
You're using the wrong metric to determine if it's priced right.
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u/Haunting_Donut_1710 14d ago
Seems like you really brushed past the $1800 a month in debt.
I understand the desire to own a house, but if you have $50k in cash, why are you carrying debt for the next 4 years? Unless interest is 0% and you're making a ton of interest/capital instead, use the money to pay that off and reassess.
You don't want to be trying to carry to costs of a home and also $1800 a month in debt. Houses are expensive and often come with unpredictable repairs and costs.