Re: Lowball Offer on House
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3% of your closing costs = $7,650.
$7,650 is a LOT to pay in closing costs for a loan of $255,000.
There is no "standard" amount for closing costs, but from my experience, 3% would be very high on that loan size.
Make sure that $7,650 isn't higher than the loan costs that you would normally have to pay. Because if your loan costs are $5,500, there is $2,150 that the seller gets to keep....you don't get the leftover amount - it's just not allowed by the lender.
And if you are spending that much on closing costs for a loan of that size, you might want to shop your mortgage.
The more of this thread I read, the more I wonder about the "deal" you are getting. Very little talk about comparable properties, and a mention of your property being cheaper due to location.
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I have a good faith estimate of $7250 on 30yr fixed @ $250,000. That's not including the inspection costs.
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You are talking about numbers and negotiations, when THIS is your main concern. Why are they lower? What is the difference? Busy street? Flood danger? Small lots? No view? Different zoning?
Forget the pennies and negotiation, and solve this question. The house has been on the market for a YEAR.
No BS. Location is the only thing you can't change. It's everything.
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Location is great. Lot size is normal (non-corner) approx. 15000 sq.ft. Not a busy street. Well established neighborhood. The houses on the street I am buying on are 2000-3000 sq. ft. Houses everywhere else in the neighborhood are above 3000 sq.ft. and price per sq. ft. seems a bit higher on those so I didn't use them as comparables. If I did, it would seem like I was getting this house at a great price. I gave three comparables of houses on the street earlier. Here they are:
Format will be (Soldprice, Sqft, Soldprice_per_sqft, Solddate)
$283,000, 2719, $104/ft^2, 02/04/2005
$240,000, 2628, $91/ft^2, 11/28/2005
$304,000, 3248, $94/ft^2, 01/13/2006
Right now at his most recent counter of $259,500 on his 2772 sq.ft. home he is at $93.61/ft^2. My agent said the statistical norm for the area is that houses sell at about 96-97% of asking price. In the case of the most recent two comparables, the asking price was $250,000 and $309,000, respectively.
On an unrelated note, what the heck is your avatar Sully?
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