Architectural Designs

Negotiating home price, neighborhood value?

W e really like this home. But it is the highest priced home in the neighborhood. It is being listed at around 298k with a tax value of 302k. The other homes on the same street range from 155-210k and are older homes 1980-1993 built. This home was built about a year ago" still new".. and is pretty nice and is insulated concrete construction and a victorian style. The other homes are the traditional 2 story or ranch style. Other houses is the same vicinity 1/2 mile or less and built new with a tax value of 325-330k have been selling for about 245-265, with a few close to 290k. Granted these homes are on the same street. We like the home , but want to protect our investment. We do plan to stay for a long time but you never know. The house did start out at 329k 3 months ago and is down to 298k now. Even if we offered 240k we would still be 40-50 higher on the same street. But to be honest if the home were located in the other neighborhood it should fetch the 280-298 quickly. Should i make a offer lower ? Closer to 220k? The other homes that were selling in the 245-265k range were in a sub division of \ same quality homes.. about a 1/2 mile away. Those homes were new also. And tax value of 325-330k The home i am interested in, is located on a street with homes at the 155-210k range and simliar tax values. Some for sell now at 155k,175k,195k... To the Janet person, within my budget? Just making some valid points... if i buy the house i will be paying in cash. We like the home alot but the neighborhood that it is in has me worried about protecting my investment. I might explore having the same home built elsewhere...

Public Comments

1. Your offer of 240K for a home listed for 298K which was just reduced is what is called a "low ball offer". This is almost 80K below listed price so the seller can find your offer insulting and simply ignore it, you won't hear from the seller again. One should not look at the home's tax value since it does not always reflect a home's real value, especially in today's market. What you should do is research recent comparables that have sold similar to your home in question and come up with an offer that reflects the market conditions in that area for that type of home, your Realtor can help you with this. Granted you mentioned that homes in the same street have been selling for 245 - 265 K but you mentioned that this home is "still new" and thus obviously its going to be more expensive.
2. You are just wasting paper. Move on to a home that is already within your price range. You are wasting other peoples time, not just your own.