wrote:
I'm interested in buying a home in IL, first time home buyer.
There is a home came out as fair condition and is priced $195000.
My realtor said it is 'a bit under priced' didn't exactly mention how
much.
My realtor wants me to put as much earnest money as possible to get it
closed as quickly as possible.
He also believes that will help him for negotiation process.
Lot of unknowns that we can't make many specific suggestions.
First off, a house is worth what someone is willing to pay for it. The
realtor is saying it is underpriced already and he wants you to make an even
lower offer. There are two possible outcomes. The buyer may be desperate
and grab your offer. The buyer may think you are one cheap SOB trying to
steal a properly priced house and tell you to screw off and won't talk
anything less than the full listed price. If you are prepared to walk and
find another place, go with the low bid. If you are crazy about the place
and surely want to live there, offer very close to asking price.
Second, never trust a realtor. They make money on sales. He is working to
sell the house and any warm and fuzzy felling he has for you goes away after
the commissions are divvied up.
If you are pre-approved for a mortgage you have more bargaining power as the
seller will have confidence of a completed sale. He may be willing to go
lower compared to another buyer. When you get down to the end of
negotiations, don't let a $1000 difference blow the deal. In the scheme of
a 20 or 30 year mortgage, it is not worth the hassle.Makes for a better
closing and better relations with the seller. When a good deal goes down,
the seller often leaves a small gift or celebratory bottle of wine for the
new buyers. When a deal is bad, they remove the light bulbs and toilet paper
just to **** you off.
Do some research on other sales around and make you best offer.