What would be a proper bid on a house?
Question:im a first time home buyer and what would be a good/proper bid on a hose thats listed at 64500and the assest value is 45000.
Answers:
If this is in the US you can use Zillow to see the the value of
the house in questions and comparative values of other houses in the neighborhood. http://www.zillow.com/
Has the house been appraised yet? The bank will not loan more than what the appraisal comes in at. The appraisal is a much better indicator of the market value of the house than the assessed value is. The appraisal looks at comparable houses and sees how much they've recently sold for, as well as taking into consideration the condition of the house and anything that makes it unique.
The assessed value does not affect the loan and often does not even truly reflect the house market value. The assessed value is only the basis for property tax calculations. For example, CA has had Proposition 13 for many years which limited the increase in the assessed value to 2% per year, while the market value was going up 30% per year in some areas.
Hope this info helps.
never bid above the assessed value!
if the seller will not let it go for a amount equaling the assessed value look at another property!!
the only way I would offer more than the current value of the property is if you are asking the seller to pay the closing or to give you cash back to make improvements. in other words do not pay more unless you get more
not the same values. depends what u see you like and dont like and what the market is around. if your going by the assest value from county those are the amounts the taxes are based and can be behind. here every couple years they go back around and do the revalue*?
my house was 64900 and i didnt bat an eye cuz it was new on the market and was better than any 75-85k house we had looked at.
if the house haas been listed for a long time knock some price off.
remember you can do alot of things. get the seller to pay $$ towards the closing, get them to pay 1 point for you (to get lower interest rate)
if you dont offer.. you'll never know
Can you go online and see what the person paid for the house and how long ago he bought it? That kind of stuff helps. All real-estate is public record so you can go to the auditor's office and see what the seller paid when they purchased and it should tell you the "replacement value" of the house. this could be helpful but is not always accurate. but you can use that amount in negotiations. Has he/she done a lot of work since they bought it. The assett value could have been done before it was fixed up. Can you find comparative houses in the area and see what they are valued or recently sold at? To be honest... $64,500 is pretty reasonable depending on what needs done with the house; the size and the locaion. I mean is it a moble home with no land or does it need a lot of work? It is just too hard to say. But offer on the low end ... you can always go up yet, they can always come down.
A bank will only loan up to to assessed value, you will have to come up with the rest if you really want that house. In today's market underbid by $50K+ and have them pay the closing costs.
the info is lacking to properly determine the value of the house, but if i were you i would get the calculated cost per square foot and compare it to the cost per square foot of the house that sold down the street of similar type but that does not take into account a multitude of variables. is this a fix and flip or not etc...
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