How much to offer on a stale listing?

5 years ago

We have been looking at a house that has been on the market for over a year, and are thinking of making an offer 20% below the asking price. I don't want to insult the seller, & trying to figure out if its a reasonable offer.

The house is in a small gated neighborhood, patio homes ranging from 2400sf to 3800sf., 10 years old to new construction. The older houses are all kind of old European/Tuscany style, a lot of dark gold faux finish paint, dark wood, heavy wrought iron fixtures, & newer construction is more modern - quartz counters, lighter colors, modern fixtures.

In the last year, new construction has been selling for about $170-190/sf. The older houses go anywhere from $120/sf to $147/sf, depending on the decor - houses with lighter paint colors and counters & more modern light fixtures are in the higher end of the range.

The house we are looking at is 7 years old, 3200 sf, asking price is $152/sf. The walls have been painted a lighter color, but still needs some updating - bathrooms are dated (lots of dark granite, dark wood, bronze and wrought iron), needs new carpet in bedrooms. It's nicer than the houses on the lowest end of the comps, but definitely not as nice as the higher end, so I think it's priced too high.

Would an offer 20% below the current asking price, with no contingencies ($123/sf) be ridiculously low? That's on the lower end of the comps, and would be almost $100,000 under asking, which seems like a lot. But would it be reasonable for an as is sale, considering how long its been sitting there?

Sort by:Oldest

Comments (9)

jewelisfabulous
5 years ago
Don't sacrifice your contingencies.
greg_2015
5 years ago
Don't worry about the sellers feelings. Offer what you think it's worth and what you'd be willing to pay. It might be sitting on the market for over a year because the sellers have high expectations and no need to sell.

Don't sacrifice an inspection contingency! The only time that should be a consideration is when competition is fierce and you need to snap up a deal. Not for a stale listing that's been sitting for a long time with no interest.
Related Professionals
Kissimmee General Contractors · Belleville General Contractors · New London General Contractors · North Adams General Contractors · Webster General Contractors · Tucson General Contractors · Cape Coral Architects & Building Designers · Frisco Architects & Building Designers · Alexandria Architects & Building Designers · Clearlake Architects & Building Designers · Sedalia Kitchen Remodelers · Richmond Kitchen Remodelers · Pittsfield Kitchen Remodelers · Fergus Falls Kitchen Remodelers · Grand Island Kitchen Remodelers
Denita
5 years ago
Agree with greg_2015's approach. Clearly priced too high otherwise it wouldn't sit for a year.

I personally look at the features of the subject property and the comps rather than per sq ft pricing since view, condition, layout, finishes and 'extras' mean more than averaging psf price in the neighborhood. Figure out the value based on comp sales subtract for condition/system replacement and come up with an offer strategy. Yes this is more involved than just taking a lump sum 20% off. Every market has properties priced too high, even sellers markets.

Agree with no waiving the inspection contingency. You never know with just one walk through the actual condition of the house. Even inspectors take a couple of hours of very close examination.

Good luck with your offer!
dees_1
5 years ago
You can make any offer you like. The worst they can do is say no.

Include all the contingencies. If they ask you to drop specific ones in a counter, decline and walk away. They may come back to your original offer.
Susan Murin
5 years ago
Make the offer you feel is appropriate. Chances are they will counter. Decide in advance on the max you are willing to pay. If they don’t counter you can always go back with a higher offer. I have been successful several times with this strategy. Waive the financing contingency if you can, but keep the inspection (and insurance, if applicable) contingencies. Good luck!!
maifleur03
5 years ago
If the house has been on the market over a year there is something major that is wrong with it or the sellers are the type to want to pick the buyer. Some people want to pass their precious house to someone who will not change anything or it might be a neighbor who ruins the sale. Things happen but you never know until you make the offer.
kathyg_in_mi
5 years ago
I put an offer on a house, lake front, the seller was in Arizona, it was her mothers house, who had passed. I offered $95,000, I think the home was for sale at $110,000. She said no, I walked away. One year later her realtor called me offering the house at $95,000. Said nope, had already bought a lake front home for $115,000, on a lot that was 15 times the size. This was in 1998 and the housing market up here was way down because the air base had closed.

Decide what you feel it is worth to you and make your offer.
Bruce in Northern Virginia
5 years ago
You need to have your realtor talk to their realtor and get an idea of why the house spent a year on the market. It may be as simple as they are waiting for the highest price and have been very inflexible. However, in the last year houses in most areas have sold very well because the low interest rates often make it cheaper to buy than to rent.

The realtor must have some idea while this house is still for sale (price too high, some weird feature, etc.). Sometimes the detractor that is stopping the sale may not be as significant to you as it was to others, so you are willing to go forward. However, remember that someday you or your kids will be trying to sell this house, and any weirdness may come back to haunt you.

Bruce
kiffkat
5 years ago
It sounds like you are in a strong position as a buyer since you are not desperate to move. That puts you in the driver’s seat. Include your contingencies and whatever price you are comfortable with. Take feelings out of the equation, it’s business, you want the best for yourself and your family just as the sellers do. We were in a similar position a few years ago, the house was on the market for almost a year. We offered $80K less than ask. The seller was insulted and said no thanks. However, we did not “need” to move and were in no rush. 3 months later, our realtor called us and said they were interested. We offered even less the second time and they took our offer. We had empathy for the seller, yet we knew his situation was not our fault. We made an offer that made sense for us. Long story short - make your offer on your terms and see what happens. Also, the main thing “wrong” with our house was just cosmetics: it was cluttered, scratched wall paint, neon colors on the walls, mismatched kitchen appliances, things like that. All very easy fixes that we made and we love it. Good luck!