Opinions wanted--1st time buyer

[mediagal]

I am interested in purchasing a condo. Economically, our area of the state is booming and housing is better than the rest of the country. Condo unit is approx 30 y/o, 1200+ sq ft, million-dollar view, carport, modern updates (kitchen cabs, paint, laminate floors, fixtures) but no refrig., carpets ok, d/w in poor cond., no w/d, deck in poor cond., will need upgraded windows, heating/air cond unit in a year or so. On mkt for over 6 months at $125k, reduced to $120k in last month. Motivated seller so my offer was $111k. Counter was $118+k...not much of a counter do you think? (Ticked them off? Oh well...) I figure approx $15-$20k for major redo's of deck, windows, heat/air unit, etc. and need to purchase 3-4 major appliances asap. A) is $112 too high? B) is $118 fair? Not sure that major redo's will be recouped at resale in 3-5 years. Not afraid to walk. Not in hurry to move.

Would love to hear your opinions. Thank you for your time.

[KarenR0823]

You should be talking to your agent about this.

[mediagal]

The agent I am working with, a long-time acquaintance, also works for the listing company. Don't really want to lay all my cards on the table at this point.

[atxrealtor]

Get another agent. Interview several buyers agents, find them online or something. Look for ones that have a well organized website. It's a good indication of their work ethic. Ask them what they think of the market, etc. Tell them your situation and ask them if they can produce good statistics for the area you'll consider working with them.

This is key: the fairness of the price, etc, depends HIGHLY on your area. What's good in one part of town may be different in another. It's completely pointless asking about what is a fair price on this board. Your questions will be answered once you and a good buyers agent go through local sold statistics one by one and see what the condo market is doing there.

[mediagal]

OK--maybe "fair" was not the correct term. I'm just looking for insights from people much more knowledgeable than I. I'm trying to figure out if this particular property is overpriced because there is alot of thought that the owner is trying to recoup his $$$ because it's been on the market for so long. Can't fault a guy for trying but I shouldn't have to pay for that unfortunate circumstance. He's had only 1 other offer in 6 months, hence my feeling that it might be overpriced. Is that reasonable to think that? Unit next to this one, same sq ft., sold earlier this year for $110k; 3 bdrm end unit (300 sq ft larger) with new deck sold for $130k. Not aware of updates to either of those units. Current owner purchased mid-'05 for $93k. Certainly not $25k worth of updates.

Thanks for your time--

[beachgirlsc]

I just posted a similar question before I read this one, and for all the agents out there, let me speak up for us beginners!

I have tried buyer's agents- I have a good one now, but with ALL of them, regardless of the fact that they are working "for me", their commission is affected by my low offer. And for those of us who are dealing with homes around the $100,000 mark and commissions of 5% (split in half, of course), no one has wanted to work particularly hard to get me a great deal. It's just not worth their effort, and I have been told as much.

I'm ok with that. I've done 99% of the legwork on my own. But when we don't know where to start, it's nice to know there are people on a reasonably anonymous site like this who can help us along.

This is such a big & exciting deal for a newbie that we are scrambling to get help from those of you with the experience and knowledge. "Get a good agent" is harder than it seems!

thanks.

[judyo]

mediagal - this unit might be overpriced & no one can really tell you if you'll recoup your investment when you're ready to move on and sell. If you truly feel it is then move on to another unit.

This is the seller's condo & whether it is overpriced or not doesn't seem to be important. This seller wants or needs a certain amount and is seemingly willing to wait (doesn't sound too motivated to me). It's up to you whether you feel this is worth it or not.

You've seen other units, right? What made you decide on making an offer on this one vs. others? I had a first-time buyer in a similar situation although it was when the market here was more active.

She saw a unit fresh on the market priced at $125,000, even though the highest selling price was around $110,000. We made an offer that was countered by the seller at around $120,000. I was truly worried it wouldn't appraise out since it happened to a condo sale just prior to this one. She refused to move up in price because she felt it was too much.

However, the seller held out & someone else ended up buying it. I'm assuming it appraised or that particular buyer had enough money down so that a low appraisal wouldn't change the financing. So my buyer missed out on a condo she loved.

We found another one that was also priced higher than any comps. I told my buyer she either takes it or leaves it (seller did come down a bit). I told her if it doesn't appraise then we'll hope the seller comes down. It did appraise. Both buyer & seller are happy.

[atxrealtor]

Beachgirl -- buyer's agents are bound by fiduciary responsibility to get you the best price. Just because their commission is tied to it don't assume that all are crooks and will want to screw you over. Also, 3% of a few thousand dollars doesn't make much of difference in the buyer's agent commission. If on the other hand your lowball offers are unreasonable based on the market, and will result in the offer being rejected, I don't blame them for not wanting to work with you.

[beachgirlsc]

Thank you for your honesty! But I haven't actually gotten as far as making an offer as yet, because until recently, no one even helped me search. Nor have I said anyone was a crook OR out to screw anyone! All I have found is that a buyer's agent I relied on for quite some time (nearly 5 months)to help me find a house, actually TOLD me that my search was going to take a while (no problem- I understand that what I'm asking for is difficult), I was going to have to do most of the searching on my own (that's fine, too-he only had to show me 2 properties of the 38 possibilities that I found on my own) and that I should "remember that he's only making a couple thousand dollars here, so keep that in mind". Perhaps I misunderstood that, but I heard that as "this really isn't worth much time or effort to me".

But my objective wasn't to hijack Mediagal's thread. I only wanted to point out that she came on & asked a question & was advised to "get an agent"... Which is great advice, if you know how to go about doing that, but Judyo's answers to her question have been more specific. Perhaps it would have been helpful to include some information on how to go about selecting a buyer's agent. Fiduciary responsibility or not, some people just work harder than others, and it took me a long time to learn the ropes... I'd hate to see another first-timer miss out while learning the same valuable lesson.

(Incidentally, the house I'm looking at has sat empty for 8 months with not one other offer...how out-of-line could my offer possibly be?!)

[mediagal]

WOW! Nice to see some action on this finally.

First of all, thanks beachgirls for joining in. I thought I was alone in this and that I was way off in another world with my questions and concerns! I continue to learn every day from each person I talk with about this. I've found that you just can't ask too many questions.

That aside--my entire "problem" has been that I don't see the same value in this condo as the seller does. I've looked at what's for sale in the same price range in this market and it's pretty much in the low-rent district (no offense intended). This particular condo has a "million dollar" view overlooking the river and out on the deck, one could see the sun rise & the sun set without moving a muscle. A HUGE selling point, especially in this area where the opportunity to buy anything with a river view like this is RARE. The owner purchased this 30-year old condo for $93,000 in mid-'05. His latest counter was $115k, no help w/closing costs, no refrig, no w/d. Nothing but the price. I keep trying to justify why I or anyone should pay for the inexpensive remodeling he did to flip the place? There is not $20k in updates and the market value has risen maybe 4%. I really can't bring myself to accept that offer. But the view...sigh...have to get over that. The view is not worth $115k to me, but it is worth something. I thought my initial offer was high and that I was being considerate of the inexpensive updates.

This is what I have to compare it to: The larger end unit (3 bdrm, 350 sq ft larger, new deck, don't know about interior updates) sold earlier this year for $130k. Another unit of the same size that I'm considering sold earlier this year for $110k (both approx $85/sq ft). This one is $96/sq. ft. Doesn't that say overpriced?

I couldn't understand how the current owner was so stuck on this perceived high price and really wasn't budging, especially since I was just the second offer in over 7 months. I think he must own it outright so not really losing alot of money (i.e., making mortgage payments on an empty unit) at this point.

So...I went back for a third look tonight with a different agent (my agent is unavailable at this time--say a prayer. He's a friend and is quite ill). I asked more questions and really feel like he was telling me that HE thinks it's overpriced but without really TELLING me so (get my drift???). I would think that a new deck & new hvac would add several thousand to resale--maybe not the full amount but certainly something, along with peace of mind to a future owner. The hvac unit has been there for a L O N G time and will need replacement asap.

Based on several things, I'm withdrawing my offer. If the owner comes back in a month or so, I'm going to offer less than what I started at. I always thought I was being generous with my initial offer. Now I think it's still way too much. I might miss out on the best view around but that's the chance ya have to take when it doesn't feel quite right.

Beachgirls--I have to say that I'm appalled by the remark your agent made about keeping in mind that he's only making a couple of thousand dollars. He's told you that you're not worth his time and your money is worth even less. I can't imagine EVER thinking that a client was so worthless to me. I guess he's never heard of word-of-mouth advertising! Granted, we don't know where you live but I would imagine you've told people within your community about this experience? I've been in sales for almost 20 years and it's people like him who give the occupation such a negative perception. He doesn't see how important that $2000 is to you. His attitude is just downright disgusting. I hope you find someone else to help you. Ask everyone you know who's bought and sold real estate. And really listen to your gut. I truly believe that's where your real answers are at. Obviously, it's not easy!

Thanks for listening everyone and for your invaluable input. Good luck beachgirls!

...did I mention the view???...

BTW, here's another forum that I have found very useful too.

http://ths.gardenweb.com/forums/realestate/?

--mediagal