What I have learned is that there is no one size fits all method to doing this. I looked at a bunch of homes too and have literally watched every home in my price range come on the market and get sold (or not sell!) for the last year in my area. I had a really good handle on what the sale prices were and quickly realized that the garbage houses sat there for a reason and the others that were scooped up in less than 2 weeks...were scooped up quickly for a reason. There is a LOT of junk out there. If she is sure this is the house she wants to go for, don't hesitate, it WILL be gone tomorrow IF it's one of the good ones.
I would look around at what the houses in the area have sold for in the last 3 or 4 months. In this market, going back 6 months or more isn't going to give you a good indication at all. Also, how long has this house been on the market? A few weeks? A year? If it's been sitting a while, then you can probably go in lower and take your chances. If she knows she's getting a good deal, I'd suggest putting in her best offer upfront and not lowballing and hoping for a counter. These properties ARE getting multiple bids by folks just like us that are scouting around and ready to buy in this market. So...there are serious buyers out there and if this house is a keeper, don't let her mess it up by trying to save a few thousand dollars and missing the boat completely. On the flip, if it's sat for a year...make sure she is asking herself WHY? and if she's prepared and has the finances to put into the home, she could makea lower offer that she believes to be fair for the condition of the property.
I think dealing with banks is more cut and dry. There are no emotions involved, they don't care if you are the perfect american family looking to put the white picket fence around their house and raise 2 generations in their home they've loved for the last 50 years. The banks only care about the bottom line. It's the number and how fast they can get the property off their books. If she has her financing in order already and can close fast, that makes her a better candidate as well.
Good luck.
Oh...and 7 bedrooms? Is this a multi-family?
Message Edited by UpUpUp on 02-20-2009 10:38 AM
