Hi everyone..I am new to this sight, thanks for any help you can give me. I see there is lots of great info here.

I want to put an offer on a condo tomorrow that is 2bedrm/2bath asking $339000...1467 sq ft. It just came on the market yesterday and is one of the larger 2 bedrms in the building. It is on the NON-SCENIC side of the bldg

I would like to know what I should offer. Not using a buyer's agent but have a broker who will write the contract for me.

smaller units in the same bldg...it is a highrise...are selling now for:

1360 sq ft - $329000 (reduced from $349000 on mtk 114 days..this one needs work)scenic side of bldg

1360 sq ft - $382500 (reduced from $392500) on mkt 70 days..new upgrades to kitchen/bathrm) scenic side of bldg and higher floor

1336 sq ft - $329000 on mkt 75 days non-scenic side of bldg

Recent sales in the building of 2 bedrms are:
11/09/09 1336 sq ft $350000
07/24/09 1467 sq ft $325000

Can you plse tell em what you suggest as an offer.
Thanks

I suppose the 7/24/09 sale was also on the Non-Scenic Side, and you actually prefer the extra GLA to the views?

Why do you suppose someone passed over the other two(2) Scenic Side Units at $329 in order to pay $350 for the one that sold a couple weeks ago? Was it better, or are prices now on an UpTick?

yes the $325000 was on the NONSCENIC side...the scenic side faces gardens and trees and the non-scenic side faces local businesses. This unit had a new updated kitchen. So that may be why they they choose it. The bathroom had some upgrades also.

Of the two at $329....scenic side, it is the smaller one is only 1336 sq ft was originally listed as $349,900 then reduced, it is in rough shape

...the other one at $329 is not on the scenic side. Also the 2nd bed room wall has been cut to make an arcway as if to extend the LR. It was orginally higher then reduced to $329 JUST IN MID-NOVEMBER so the price at the tine could also have been a factor.

the more expensive one is scenic side and higer floor at $382500.

Yes for me the space is themain factor. Not the view

fyi...sorry i meant the $350 ...it was on the market 77 days

You want your Offer to be high enough to be considered; but low enough to still be good for you.

I'd call the Assessors and ask what the place is assessed for. If it's around $300,000 or $310,000, I'd offer that amount, expressed exactly, right down to the penny; say like $296,780.50. That looks stupid; but demonstrates that you've done your homework, and didn't just pull it out of the air.

You apparently want to be in that specific building . . . . which places you at a bit of a disadvantage. DO NOT reveal this motivation to anyone as it will be used to undermine your bargaining position. Check out a few other condos and see what other similar units are selling for TODAY. Just to prepare you to talk about "the market" with confidence.

Otherwise, I might tender an Offer of $300,000 to test the waters. The worst thing that can happen is they'll say "NO". Or they'll ignore you. These days, most Offers from real people do not get ignored. Anticipate a counter-offer at $325,000, and for negotiations to conclude around $315,000 to $318,000. If you really want this and no other, you may have to pay $325,000 like the other 1467SF; $330,000 if they find out about it.

I will call and check. The location is a good one and 10 min from my job. I actually rent in the bldg.

This on the listing page but I will take your advice and call to check:
Assessment Information
Year: 2010
Total Assessment: $389,000.00
Total Assessment Frequency: Annually
Special Tax Assessment: $906.37
Special Tax Assessment Frequency: Annually
Land Assessment: $114,000.00
Land Assessment Frequency: Annually
Improvement Assessment: $275,000.00
Improvement Assessment Frequency: Annually

Updated kitchens and bathrooms sell homes. So it sounds like that was a predominating factor. You should reduce your offer based on that. For example if the updated one sold for 340,000 and it would take 25,000 to redo the kitchen and bath you should deduct that from your offer price.

People move every 3 to 5 years on average so at some point you will have to update it to give it chance on resale.

The sellers of a non-updated unit can't expect the same price of a newly updated one. Just submit the offer and see if the sellers are realistic or not. You also want the home inspection to look at mechanicals. Even though they might be functioning they might be at the end of their life expectancy which will be an additional cost for you right after you buy it.

So my interest is only in bthe 1467 sq ft listed at $339
The seller has told me:
-new kitchen floor was installed (tiles)
-new gas stove top
-new dishwasher
-all newly painted
-fridge is 1 yr old
-all hardwood floors just redone
I walked through with the seller and saw all this.

The only one that has recently sold that is the same
size 1467sq ft...was listed at $349500 & sold July 2009 for
$325000. It says in the description "this unit has not been updated although the dishwasher and fridge are newish".

My lender told me that the seller has done their homework because the price is in a fair ballpark range for the building and this unit. he said he did the mortgage on the smaller unit
1360 sq ft that sold for $350 and it DID NOT have any upgrades.

My lender also says that in order for them to know that I am really serious he recommends a 25% downpayment.

Also what about the seller helping with closing costs?

I meant to also add that in looking at the $339 list and the $325 that sold & what they have done and what needs doing... there has to be a middle ground here to work with as a offer.

There is an open house this weekend and I want to have the jump.

As mentioned by super realtor the bathrms/kitchen are imp. they have done some kitchen things...not all and no bathrm changes
So where to start?

As mentioned by Vermont I may end up with the $325 as a counter offer.

the seller said they did not want to "overprice it" but felt they had chosen an attractive price for the size. The agent is the nephew of the seller & just wants to get it sold as the Uncle is moving in with a family member.

FYI...the condo is empty & as I said only on the market since Dec 2/09

If you want the condo, and it is new on the market, offer the list price. It sounds like the listing agent/seller did a good job in setting the price.

That's the same thing as lessening your Offer by the amount of the Concession; it all comes out of the same pocket. If you have the money, then keep it clean and avoid inserting something else for them to think about and delay making a decision.

You've got the inside edge, and more information than anyone else.

You can also prepare your Offer (leaving the price blank for the moment) and play some brinksmanship. Watch th Open House (what is it, right down the hall?), talk to the Nephew during and after, size up the activity/interest . . . . and fill in the blank Price after assessing the level of attendance/interest that you perceive. Have a Letter from your Lender available to accompany the Offer. They want this to be over quickly just as much as you want that specific Unit.

May,

Why in the world don't you work with a buyer's agent?

[quote=lizl]May,

Why in the world don't you work with a buyer's agent? [/quote]

This^

Do you know that it is absolutely free for you to use a buyers agent, and all of this negotiating can be done to benefit you? You sound like a smart person, and a smart person would use an agent, no matter how much they think they know about the market. Agent's don't only find homes for people, they should know their market and know what a good asking price is. They can also gauge the amount of traffic in your market, negotiate on your behalf so you don't say something stupid that gives your motives away, and will probably net you a better deal. Ask your friends and family if they know of a solid agent in your area.

I am asking the same question, why aren't you using a buyer's agent? This is a HUGE investment and you need to be represented by someone who knows the area and can give you sound advice. It's great that you have all this sales information but you need someone working for you.