Appraised value vs. asking price, re making an offer?

Just wondering, and sorry if I ramble, but what's the go with the appraised value of a property and asking price. Ie, if a property is listed for sale at $260,000, the appraised value is $220,000 to $230,000, and the owner is "open to offers", it would be perfectly acceptable to offer, say $210,000 ?

And secondly, say said property seems to only have one woman living in it and she is "downsizing", yet there is clearly a lot of old machinery, car bodies, and general scrap around including garden "ornaments" (you know, rusty tool relics about), plus other bits and pieces, how would you make an offer for all that to be left behind? If she is downsizing, I can't see her wanting to take it with her, and a lot of it is what would be considered scrap, so should, in theory, be all cleaned up before settlement. Wouldn't we just be doing her a favour with the scrap side of it, saving her time and money not to have to bother about getting rid of it? Anyway, rambling, sorry, how do you ask for things to be left behind/make an offer/put a value on it?

Make the offer for the property 'as is'. She'd probably have to pay someone to remove it all so the lower offer will seem more appealing.

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Make the offer for the property 'as is'. She'd probably have to pay someone to remove it all so the lower offer will seem more appealing.

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I agree make the offer of $210k as is

Yes. I agree with nai.

Thank you ladies. I saw the appraised value on the documents in the agent's hands as he was looking for something else :) The Man will be doing the negotiating ('cos he's just good at it), but it would be nice to be able to discuss it with him and at least have something reasonable to say! In the mean time, keep your fingers crossed for us please!

I was told not to offer too low or they will be offended and 'turned off'. As far as they know, you haven't seen the appraised value. You'd be offering less than their appraised value, I would think you've got no chance.

Also, you could add a clause stating they are to remove the unwanted items.

I wouldn't accept an offer less than appraised value, but it is a good jumping off point for negotiations.

As far as the junk in the yard, talk to the RE and tell him you would add $X to the buying price for it to remain. You will need to be really sure of exactly what is there and exactly what you want left behind though. Last thing you need is to have her leave whole heap of useless **** everywhere, or a pile of asbestos hidden in a car body......

Good luck! :)

Appraised values are generally on the conservative side nowadays, so I would think if you offer below they could give a flat no.

If she is downsizing there may be the cost of a retirement house she is considering.

Do say you are happy to have the house as is though. That gives the option and the sale is not dependent on the stuff staying.

I would think that asking a vendor to drop their price by 20% is a little ambitious (sp)
It the house has a bank value of 220-230000 then that's what the bank would expect to get for it if they had to repo it. That's why bank valuations tend to be on the conservative end of the market.
I think you need to forget the bank valuation and compare this property to others on the market, and make any offers accordingly.
But hey, you never know....
Good luck :)

I agree with livinthedream, a low offer is one thing but appraised/bank value is another because they are so conservative. We recently purchased a property that has been on the market for 12 mths in an expensive tourist town and offered just over 10% below advertised price which they knocked back but we negotiated and got it at 45k less than they wanted but that was still less than 10% below. I would be talking about other stuff on the property once you actually have bought it.

If you want certain stuff left, you need to specify exactly what those items are, because the phrase 'as is' is a bit meaningless unless the seller has already moved out. 'As is' could include the dishes left in the sink, all her furniture, etc... You need to be really specific, but the agent should help you to phrase it correctly in the paperwork if you explain what you're after. I would definitely discuss these items as part of the offer, not bring it up once the sale has been agreed.

And as far as offering 29% below asking price - it's an offer, not a final declaration of what you're willing to pay, and who cares if she is offended! It's a starting place for negotiations. If she's not happy, she won't accept it, and won't counter-offer. Or, she'll counter-offer with a tiny reduction, and wait for you to go higher. She will have a figure in mind that she is willing to accept, and you just never know your luck. She's not going to refuse to sell to you personally at a negotiated agreed price a bit further down the track, just because you made a low starting offer!

I think it was more that they would be offended, and not want to bother with the whole negotiating back and forth from such a low starting point and that it's so low that they may think its not a genuine buyer or likely to close.

Just ask the real estate agent before putting an offer in.

If they won't consider that price the agent will just say that they won't even put the offer to the vendor. It really depends if there is any interest in the property at all from any other parties though

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I think it was more that they would be offended, and not want to bother with the whole negotiating back and forth from such a low starting point and that it's so low that they may think its not a genuine buyer or likely to close.

Just ask the real estate agent before putting an offer in.

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I see what you're saying, but if they want to sell, then they have to 'bother' negotiating. If they think your price is too far away, and so you're not genuine, they won't counter-offer, and it'll be up to the OP to make a higher offer.

I've had an agent tell us that they turned down an offer of X last week, so it';s not worth going in any lower than that, but we only went $2500 higher, and they countered at just $1250 above that, so we accepted. It was a final amount well below asking price, and I had expressed my concerns about 'offending' the sellers, to DH... he convinced me to not be worried by it, and just make the offer anyway, and he wa exactly right.

Don't forget that the agent is not *your* agent, they are the seller's agent, and they are not going to give you advice which lowers the possible selling price and therefore their commision.

Keep in mind too, that if there are other people interested that once one offer comes in, the agent will call in all other interested parties to put in offers too, so you may not have the luxury of being the only people negotiating? Depends where it is and the situation I guess, we were lucky that nobody else was involved and were able to go in low (well under their listed price which was just over 10%) but if others were involved we wouldn't have taken that risk.

Thanks everyone. I think we would negotiate the additional "stuff" as part of the overall price, not after the sale. The property has been on the market three months, and I think the agent said he has only shown one, maybe two (damn goldfish memory!) other parties through the property. And that other party has to sell their property in Melbourne first, a property which has some "issue" in being sold easily, so isn't really a serious contender for the mean time.

I have been googling this property this morning, and came across it for sale/sold last November and December. I don't know if that means it was for sale and they took it off the market for some reason, but it seems to have bene for sale a whole lot longer than three months! Hopefully that will work in our favour too.

Offer what you think it is worth and are willing to pay. Don't be too swayed by asking price, bank valuations an all that jazz. Do your own research into what other similar properties in the area have sold for recently, and how much you think you could honestly sell it for without inflation.

Thanks Misty.