Bidding on a home

[Anonymous]

I was recently pre-approved for a FHA loan, and my husband and I found a house that we love and we would like to place a bid on it. The house was placed on the market in October '07 at $385,000 and lowered to $359,900 in December. The estimated value on the house is $325,000 in 2008. The listing agent has the listed value at $355,000 but that price was in 2006.

I get the impression that we are the only people that has gone to see the home. We have been told that they are motivated sellers and plan to move out of state. My husband and I have discussed it and would like to bid closer to the current estimated value of the house, but I am afraid of going too low from her asking price and offending the seller

The house will need some updates and repairs in the future, like windows, new furnace etc.... any advise?

[Anonymous]

First - are you sure you can get FHA at that loan size in your area?  It varies by location, here in Maryland it's $362790 in the major metro areas, but in other places it's as low as $200160.

Secondly, in this market, don't worry about "offending" the seller.  Make the offer you're willing to pay, period.  I am about to offer $247,000 on a house listed at $265,000, due to the fact that it needs a lot of cosmetics.

[Anonymous]

Joe77, Thanks for the response, yes I live in Boston, MA and the FHA limits are higher. I have been pre-approved for the amount that I wanted. In the current market I wanted to get the best house for my money now that the prices are starting to trend down. I am going to make an offer tonight with the selling agent.

[ShanetheMortgageMan]

I'd think the seller would be ecstatic to get an offer... ANY offer.  If it's a low ball one, and the seller is the one who is stubborn about not lowering the price, the seller's agent can use that as persuasion to convince the seller that this market isn't yielding those high sales prices like we've all been used to for the past few years.  Hope your offer gets accepted.

[Anonymous]

I was recently pre-approved for a FHA loan, and my husband and I found a house that we love and we would like to place a bid on it. The house was placed on the market in October '07 at $385,000 and lowered to $359,900 in December. The estimated value on the house is $325,000 in 2008. The listing agent has the listed value at $355,000 but that price was in 2006.

I get the impression that we are the only people that has gone to see the home. We have been told that they are motivated sellers and plan to move out of state. My husband and I have discussed it and would like to bid closer to the current estimated value of the house, but I am afraid of going too low from her asking price and offending the seller

The house will need some updates and repairs in the future, like windows, new furnace etc.... any advise?

It seems to me the house was probably overpriced at 385,000.