Re: Negotiating Misrepresented 1905 Cottage!?
You need to get three things, in this order:
- Appraisal by a licensed appraiser (NOT the tax assessment). This is a more reliable report than a real estate agent's comparative market analysis.
- Thorough inspection by a licensed home inspector.
- Estimate of repairs by a trusted, licensed contractor (even if you plan to do repair work yourself) using the information from the inspector's report.
Your offer will be based upon 80% of the appraiser's report, MINUS the cost of any repairs necessary to bring it to basic "in good repair" condition. So if the appraiser's report is $100,000 and the contractor estimates $20,000 in repairs, your offer is $80,000 minus $20,000, or $60,000.
Don't be afraid of insulting the sellers. You say you can't afford the listing price anyway, so you're out nothing but the costs of appraisal and inspection. And if they do come back with a counteroffer, you have wiggle room to counter the counter offer.
NEVER go above the appraised value minus the cost of repairs. If you do, you risk not being able to recoup the total cost of the house should you face a financial emergency.
P.S. -- If the sellers still don't bite, then they didn't want to sell the house in the first place and are just wasting their listing agent's time.
The "Senior Member" designation under my name doesn't mean I know a lot, it just means I talk a lot.I've been a DIYer since I was 12 (thanks, Dad!). I have read several books on various home improvement topics. I do not have any current code books I can refer to. I was an apprentice plumber for two years.