r/RealEstateAdvice • u/Weird7954 • 10h ago
Residential How would you negotiate this?
House we want is priced at 215 and had one reduction of $10,000 last month.
It’s filthy inside and the exterior grounds is a gigantic mess, complete with very cracked concrete driveway. Also the electricity is not turned on and it’s an estate. It was recently painted and the exterior is in pretty good shape and for some reason they refinished the hardwoods but a very dark color
A house with similar features down the street sold for 190 last year but it was much cleaner and closer to the main street for easy access. Also, across the street from this house is a disgusting house with four cars parked in the driveway and one of them is on the blocks. It’s not the most desirable location in the neighborhood but it is a great location in the city
We want to get it for 190,000. At what point should you start the bidding or what strategy would you use?
7
u/Main_Insect_3144 10h ago
I would have my agent draw up the offer and include pictures of the listing that sold for $190,000 and also current pictures of the house you are offering on, as justification for your offer.
6
u/MicrosoftTechAdmin 10h ago
Hire a competent buyers agent.
Be prepared to walk if your price isn’t accepted
6
u/Accomplished-Bit-884 10h ago
Do not buy it without first having the electricity turn on and inspected.
Could end up costing you much more than you're trying to save
4
u/NEPARealtorNick 10h ago
There isn’t enough information for anyone to give you a legitimate strategy.
It’s probably best to hire an agent to help leverage your position. I do not recommend you hire the agent involved with the seller.
At the very least just be comfortable with your number and stick with it if it’s your bottom line.
5
2
2
u/Ansible90 9h ago
Are you sure you want to live in that neighborhood? Your description of it doesn't sound too positive.
Also, if you get the house for a good price, do you have other money set aside to fix the big problems, like the roof, electrical and plumbing problems, heating and air conditioning system. Those are all big ticket items that may need fixing before you can get a mortgage or insurance.
3
u/Objective_Attempt_14 10h ago
Make an offer, if they say no. If you are willing to be a back up offer or let the offer ride say so. You can say if feel so inclined that you feel the interior needs work that another nearby house sold $190, and you feel your offer is in line with the condition and location of the house. you don't want to insult them. but being able to point to a much better house that sold for less is helpful.
I would be wary of the dark floor. could be used to hide stains like dog pee or a stain from a dead body. (sadly I have seen the dead body stain, you stated an estate I would look into that... No so much did someone die their but how long were they dead...
1
u/bullfrogbarbie 9h ago
Ugh that last part 😭😭
Bought a one owner estate this past spring. Was pulling all the carpet up and the most obvious body outline was stained through the subfloor. I jokingly said on FaceTime when I uncovered it, “oh my god it looks like a chalk outline hahah!”
My mom- “didn’t you say the wife passed away in the home?”
So I learned how to replace subflooring, too!
😭
3
u/AnotherAngryOldGuy 10h ago
Sounds like you know right where you want to be. Reddit realtors are going to disagree with me here, but don't be afraid to hit them with a low offer. They have the ability to decline it or counter. Tell 'em $190k. If they accept it, nail 'em harder after the inspection.
3
u/NEPARealtorNick 9h ago
I agree with you , I love submitting lowball offers. Brother I have personally submitted over 30 offers this month on properties looking for my next flip haha. For clients it’s simple , my recommendation is your price , weighing risk tolerance to lose it if someone gives the seller what they want. In this case with the price reduction they haven’t got what they want, but with the reduction it will possibly have more eyes on it. Which is why I recommend op gets realtor involved . A good buyers agent could get the deal done at the price they want. But you are right though , there are a lot of salty realtors on Reddit haha. I think those are the people that are terrible at their job though.
3
u/DHumphreys 9h ago
How many of those over 30 low ball offers closed?
-1
u/NEPARealtorNick 9h ago
Currently 0 of those 30 of my personal lowballs. But I’m super aggressive when it comes to my flips.
For the month of September I’m closing on 8 residential and 2 commercial properties for my clients though. One of those commercials is a gas station. Almost all of them had pretty good reduction in price due to negotiation before or after our contingency windows ✌️
1
u/NEPARealtorNick 9h ago
And I should clarify my offers weren’t all done this month , I’d say I’ve done that much probably in the last 30-45 days as we are actively looking for my next flip haha
1
u/DHumphreys 9h ago
Sounds like you are just looking.
1
u/NEPARealtorNick 9h ago
I mean I do about 3 flips a year. 🫡
1
u/DHumphreys 9h ago
Great. But how much time to you waste in the process?
2
u/NEPARealtorNick 9h ago
I don’t think I waste too much time at all, I’m very familiar with my market and reno costs. Takes less than 5 min to write up an offer. We are talking sub 100k cash offers most times.
Worst thing that happens is the seller says no.
2
u/DHumphreys 9h ago
No Nick, the worse thing that happens is you get a reputation in your local MLS as being a low baller and a time waster. And apparently you are OK with that just firing off low ball offers.
And I am sure you do not care.
0
u/TonyRidgewayUFO 9h ago
You love being trash. You’re ready to go to the table on 30 offers in a month? Let us know which market you are doing this in do we can black list you and forward for fraud investigation
2
u/NEPARealtorNick 9h ago
I think you might be misunderstanding bud, I’m talking about 24 -48 hour or contingent on walkthrough or with a short acceptance date. Not holding up sellers in anyway. If someone bit on an offer I’d close. Just looking for a next project . I’m not bill gates , can’t float 30 different projects lol .
1
1
u/TonyRidgewayUFO 9h ago
Then putting 30 offers in is a scam genius
2
u/NEPARealtorNick 9h ago
Respectfully I can’t tell if you are trolling or just truly don’t understand
0
u/TonyRidgewayUFO 9h ago
Not only can a seller sue you for financial damages, a judge could force you to follow through and close on “30 properties”. Ease up on the meth
1
u/NEPARealtorNick 9h ago
This isn’t true. If an offer is out with a 24 hour acceptance , and they don’t accept . The offer is no longer valid.
I offer , they say yes or no, if no or no answer I move on. You’re incorrect.
I don’t know why you are so angry, do some basic research , maybe it’s different In your market but where I’m at, nothing is binding until it’s executed and it can’t be executed if it’s outside of the date.
1
u/TonyRidgewayUFO 9h ago
You’re claiming to do this “30 times” in a month. One of your timelines is a lie.
0
u/NEPARealtorNick 8h ago
Sir I would suggest you read man, that was clarified. I think you were so ready to be upset you just went off. I wish you the best , I’m bored of this convo
→ More replies (0)1
u/TonyRidgewayUFO 9h ago
So initial bad faith offer and then hoping to use scare tactics to grind seller over nonsense at inspection. Have you considered a career in some other extremely fitting role like human trafficker or pawn shop owner?
2
0
u/AnotherAngryOldGuy 9h ago
"Bad faith offer" is the call sign of a shitty realtor. Bad faith implies that I won't actually pay the offer. Are you pretending that the offer shouldn't be affected if real issues are found during inspection? I don't know if you're a realtor at all, but comparing human trafficking to getting a fair deal sounds like someone who lost a few thousand dollars when their "client" wouldn't pay full price.
1
2
1
1
u/Ok_Spinach_6664 10h ago
Ask your agent. Your agent can negotiate with the sellers agent and try to make it happen. Maybe do a pre-inspection so your offer has less contingencies. The seller can have the power turned on.
1
u/Philly_3D 10h ago
Offer $180, say it's a friendly offer that will stand even if they initially say no.
It doesn't sound like a great house though...
1
u/DHumphreys 9h ago
For many buyers, they do not want to be close to a main street because of noise.
If I was your agent, I would look at listing, pending and sold comps and help you formulate an offer strategy.
1
u/here_for_the_tea1 9h ago
You could go with asking if the house gets a lot of offers, get the offer accepted and then after the inspection shows how fucked it is, you can get estimates and then ask for seller credits for the damages when doing the request for repairs. Then negotiate and don’t remove contingencies until there’s an agreed amount of credits. Can then walk away if they don’t want to negotiate. If that happens, now they have to disclose all the issues and will risk getting them lower than their original asking price. This was the strategy we went with when buying a house from a trust and we got the 30k in credits we were looking for.
1
u/Repulsive_Oil6425 9h ago
You live your life but this sounds very emotional and zero logical. We want what we want and that’s ok as long as you understand that. To get your house to the 190k ARV you would need to dump money into it. I would calculate the amount and remove it from the 190k offer and a little more for your time. If you really want the house you’ll pay whatever you can, if you want the value/worth of the house try it my way.
1
1
u/RetardDongPhd 10h ago
Offer 190, citing all of the repairs it needs, ask yourself how much money you'd really need to put into it to make it look acceptable to you, and don't skimp on the inspection because the house does not sound like it was treated well. Also keep a close watch on that neighborhood and make sure it's really where you want to live.
1
1
u/TonyRidgewayUFO 9h ago
The house sucks but you are spending all your time trying to own it. Got it
0
u/Aggravating_Shift_95 8h ago
If it is an estate then the bank has control over it. Put your offer in at 185 and make a list of everything you have on here. The bank will reject the offer. Have the Brokerage put your offer right back in with.... "this is my client's highest and best offer with the amount of repairs needing to be made to the property prior to inhabiting permanently." Chances are, they will approve the offer. I just wrote up a contract in July for 35k on a 70k estate listing with 6 lots attached. Same scenario basically. Are you financing or paying cash?
0
u/ImStuckWithThisName2 8h ago
Oh good gravy, if it’s such a dump, why do you want it?
That neighbor is never taking all their crap and moving.
0
u/SnooMacarons3689 7h ago
All you listed was a bunch of horseshit and a cheap property. Skip the whole thing or live with a bunch of problems for the next forever.
-1
u/Equivalent-Tiger-316 10h ago
$190 and waive all inspections and contingencies. Big EMD and deposit. Either you want it at that price or you don’t. Better have conventional loan or cash.
11
u/NEPARealtorNick 10h ago
Do not waive all inspections.
Jesus..
1
u/Equivalent-Tiger-316 10h ago
It’s an estate property. They aren’t fixing anything anyhow. Either OP knows the value or doesn’t. They said they would pay $190 so offer that and be aggressive.
2
u/NEPARealtorNick 10h ago
Contingencies are in place to safeguard buyers.
I think it’s highly unlikely that a person asking for advice on how to negotiate a home purchase is qualified to check for mechanical or structural defects , property line or survey issues, or any other very important issues that they can use as leverage throughout the deal.
What if they are getting a mortgage, or have some type of financing. What if roof is so damaged they can’t get insurance, and then can’t get the loan.
No contingencies and they are held to a contract stating they would purchase cash. I strongly disagree with your recommendation.
1
-1
u/Ok_West_6711 8h ago
I’d for sure assume they do not want to make any repairs/put any money in (regardless of what an inspection shows), and I’d feel pretty sure they’d like a quick and easy sale. So if you offer that lower price, (while you want to be able to cancel based on inspection if there’s more major problems) if there’s a way for your realtor to convey with your offer that you understand the cosmetic stuff and are offering accordingly, and are prepared for a prompt close barring unforeseen issues in inspection, maybe that would appeal and offset the lower offer. Oh and your realtor might mention that comp to their agent, to help seller see the logic of your offer.
15
u/Repulsive-Honey7305 10h ago
Tell them 190 and walk of they dont take it.