How much higher?

[Charlotte91]

If you knew what a house is valued at, how much higher than that would you offer??

Looking at a house. We know it's valued at 102,000. (this is alot for where we live). The owner started at 115,00 and has since dropped the price a few times to 107,000.

We're going to start offering at about 97,000. How much more than what a house is valued at would you be willing to spend?

[~me~]

I wouldn't spend anything over the value unless of course you desperately love it. That's just me. You would be over capitalising and if you wanted to sell later, you may not get your return. I would think the fact they have dropped the price already, they would be willing to accept anywhere within your offer and how much they are asking for now.

ETA: An as *det* has mentioned, you could even start at around 95,000. Has it been on the market for a while? Does it need some work?

[diva det]

ooh thats a hard one
i wouldnt offer much more than 100K
but it up to you how much you like the house
100k is a nice round number so i would be tipping that may be there bottom line

what about even offering 95K to start with and see what happens?
you can always go lower and go up!!!
better in your pocket than theirs!

[Beach Mama]

How do you know what it is valued at? Is it a bank valuation? Real estate value?

Depends on the house and the area plus it is all relative to the amount. For eg. One place we bought was listed at 380+ and we bought it for 440- property values at the time were through the roof and we were competing with lots of other offers. Another house we bought for exactly what they had it listed for as they had dropped the amount a number of times and were pretty sure they wouldn't go any less. Our investment property we offered at the lower end of the range and go it but we knew we were alone with our offer which mades a big difference.

Considering that this house you are looking at has already dropped it's price a few times I would imagine that your initial offer won't be accepted and you will pay closer to what the value is? Tricky one hun - good luck with it all!!

[Joeve]

Wow where do you live?
I would offer 100k and go up to 102k. We have sold many houses over the past years and as a vendor if you get an offer nearish to what you want I think it makes you more flexible. With our last house we got some low offers and it made us think the people were not serious! Just
My opinion

[OceanPrincess]

I want to move to where you live!!!

Offer lower. You can always go up. We managed to save 10k on our current house by going in lower than our maximum.

Work out your max - how much can you realistically afford? How much do you WANT to afford? - and go from there.

Also as Feeb mentioned, if it's been on the market a while, go lower. They'll be getting keen...

[PinkPalace]

i agree with tanstar
who valued the house as realestates generally value them higher than banks will.

we paid over asking price for ours which was high for the area but thats because we loved the house and had to do nothing to it.
x

[Kazzo]

We saved $20,000 on our house by starting with a really low offer but we knew that the house had been for sale for a long time, had already dropped down $15,000 and the owner was now beyond ready to sell the house and we were the only interest. My point is it would all depend on the situation around the house as to what to offer.