I am going to make an offer on a house this week and would like some advice. The house has been on the market just over 14 months, it is a brand new house in a rural area. I believe the listing price started around 0k and it’s now listed for 9k. I thought about offering 5 and ask for k for closing costs and to pay for a refrigerator(it has all other appliances). Is this laughable or do you think I should start there and they will probable counter. Thanks!
Never offer the askng price in this market, nor anywhere near it.
I’d start around 100K and ask for the help with closing costs. They will counter unless they are totally desperate (and they might be!)
You should have a realtor negotiate on your behalf. I’ve always been able to get a much lower price than a buyer walking in off the street and making an offer on their own.
There is no set amount. People will say 10% 5% or what ever, they don’t know what they are talking about.
I work in a rural area and for me anyway very few homes are alike so you can’t really use comps. You can see what is going as far as prices raising and falling but not much else. We usually figure what construction cost would be for a new home and START from there. You have to figure Quality of construction, type of construction, age condition etc. If it is a 1,000 square foot home on 3 acres and you can build fo4 $75 a square foot and 3 acres cost $10,000 you should bay around $85,000 or less unless the home or property has something very special increasing its value, such as extra buildings, river front, easier access, not too close to a noisy highway etc.
Many rural have little or no building codes, even it they have them there is usually no enforcement. MAKE SURE YOU USE A HOME INSPECTOR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
This is somewhat simplified but should get you started.
Offer 100,000.00 Nothing is laughable anymore.