Hi me and my husband are buying our first home and we have a realtor but sometimes I feel misguided by him. We have been approved for $100,000 and it's been hard finding homes in our area in that price range and that we will even think of living in with our 3 boys. However I found a home that's priced over our approved amount by $7,900 so I'm asking him what should we do and he' song being straight forward with us about it as far as offering a lower number or what ever. I've watched HGTV so many times and see people buy homes for at least $20,000 cheaper than the asking price. I'm just desperately seeking some other advice for direction as to how to approach this, buying this home or just keep looking... Your help and advice is needed and I thank you in advanceadvance..
Is this YOUR agent you're talking about or the seller's agent? There is no need for you to do business as a buyer with an agent you don't believe is acting in YOUR best interest or you don't feel comfortable with.
I don't know where you are or your local market conditions, a good agent will. A good agent will know the comps and the property history of houses they research for you. If the agent knows the house is recent on the market or has just had a price drop the owners might not take too kindly to an offer almost 8% below current list price. Competition in that price range is pretty strong.
Anything can happen with pricing. But do not expect a $20,000 discount on a $108,000 house. Ask your agent what he thinks is a reasonable offer on the property.
You stated you've been approved for a $100,000 mortgage. Unless you are looking at FHA or other types of reduced down payment mortgages you will be expected to provide a down payment of $10,000 - $20,000. Even an FHA you would be putting up $3,000. That is very close to a doable combination for a $108,000 house.
If you feel he is not representing your best interests, then interview other agents. Make sure you do not have a signed Buyer's Agreement with your current agent; if you do ask to be released before moving on.This message has been edited. Last edited by: Charming,
The real reality is how much you can afford a month on top of taxes .You would have to add all that up and figure out your monthly payment and taxes and other bills you have and then add on water bill, electric bill ,heating and cooling bills .Also have to think ahead if anything goes wrong in the house or your jobs .Never go over what you are wanting to spend .Other thing is how long has the house been on the market and how are things selling in that neighborhood ,comparable sales and houses up for sale in that area with close to the same sq. ft. and condition of house and age and updates .How long is the normal house on the market .New agent may be something also to think about .
Thanks for all the responses I got, I have talked to my agent and voiced my concerns so he has looked at all the information that you all mentioned in your responses and has called me with all the comps(he sensed he was about to be fired)LOL.... I am looking at FHA loan and we have discussed an offer price too that we are comfortable with, I feel good about it. I'm going to let you guys know what happens next.