Not So Motivated Seller
This is not a foreclosed house.
This property is owned by an almost 90 years gentleman whose wife passed away a few years ago. He decided to move to Florida with his family in Florida. He put his house up for sale in July, he moved out at the end of 2004. His furniture everything is still there, just him moved out. So the house has been listed for 6 months without any offer. House itself is very good but outdated.
House(Tax 7.5k): 38 years old, all brick, 2500 sq and plus about 300 finished basement, 4 beds, 3 and half bath. The third bathroom is down at the base. It is very simple, no drywall, vent just shower and toilet. Master bathroom is very small and does not have tub just shower, but does have a walk in closed. Two-cedar closet in two other bedrooms. The fourth bedroom is small. Bathrooms are pink tile, toilet or blue tile, and toilet. Hardwood floor throughout the entire house except slate tile entry and kitchen floor is something called linoleum. Talking about kitchen it needs to be gutted, it is clean but with bad layout and so outdated.
Windows are original window. The paint has peeled off on some windows.
So the job here is new kitchen, kitchen floor, update all three bathrooms, interior paint and carpet in the basement and light fixtures through the house. Roof/gutter/downspout/facia etc are only two years old; furnace and air are relatively new as well.
The gentleman had the appraisal done in June 2004 for 286k. The FMV will be around 290k – 300k, one similar house on the same street is listed 11 days ago at 329k and was under contract already.
The house started as 294k and reduced to 279k. I offered 200k, cash, no inspection only need title search and close in 2 weeks. The listing agent call the owner, he got ssssooooooooooo mad!!! at everybody the listing agent and me! He said, “I was told the house can be sold when it is reduced at 279k and several month later people offer 200k?”
At this point he did not even counter offer since he is so mad.
So the listing agent called me and explained to me and asks me what my best offer is? I have not answered his question, I am still thinking. I definitely can go up a little more, but how much more?
I am not sure how you are calculating the FMV to be $290K to $300K if it is sitting on the market at or below FMV for over 6 months. I would double check my numbers and NOT basis it on one other house that sold at that price.
I personally would let him sit on the offer for a bit and see what else they get, then make the same offer again in 2 months if you think it is truly a good offer. I am not sure how you came up with $200K though.
well, the houses with similar sq footage, year sold in past two years around the neigbor for around 270k - 320k, most of them are has updated everything. that is how i come up with the FMV and house is appraised at 284k as well.
thank you
Good luck with this one. As you said he doesn't sound very motivated. Taking 80K less than the asking price at this time is probably not going to happen. I have seen people leave houses on the market for 2 years without dropping that much. Eventually a retail buyer will pay more than you ever will.