How much can/should I offer on 1 year old home?

[Chris3k2]

How much would be a reasonable offer to make on a home that has been on the market for a year but is new home. Nobody has lived there, just the house on this particular lot has not sold. I've been trying to read around and have seen where offering 10-20 % is a decent offer without insulting the seller. I'm in South Carolina. the city it is in is Elgin. 

Seller's Asking Price: $197,000

3 bed, 3 baths. huge loft area (could be another bed I guess)

3100sqft.

2 car garage.

on 18,000sqft lot.

Based off what I was reading. 10-20 percent would be around an offer of 155k-175k. I know rates are getting higher and home prices are also rising but this house has been on the market for 400+ days. Any suggestions from the mortgage experts or just any at all? We are also not asking for anything added to the home. We'll take as-is.

[swtneka]

I'm know expert but i watch alot of hgtv and if it was me i would start at around 170k. If the house been available that long i am sure they are eager to sell. I think they will counter at 180k and u can go from there.... u can go lower but i am sure they will be insulted with anything under 170k.... gl

[webhopper]

Its possible that they would entertain an offer of 165k... and maybe counter, but I'm sure they've probably been down that road before.. A lot of people are hanging onto houses because they don't want to be low-balled and they literally can't afford to accept less than asking price.  The house I bought in Jan 2012 had sat on the market for 11 months.  The Original asking price was 189k, and I got it for 175k which was effectively 163k (sellers paid 3% towards closing and also a $4500 fence allowance)

[Chris3k2]

thanks for the info. my realtor said with the recent comps in the area that he would suggest 190,000 or so. I'm thinking we might just build on an open lot because the base price for the same floor plan is 183,000. We'll see.

[pdog661]

I am not saying anything against your realitor, but if that was the case the house would have sold. 

Is there anything with that specific lot that makes it undesirable?

I will say that the housing market is heating up, and 155-160 6 months ago may have been entertained where 175 today may not. 

Have they done any price reductions?  If so, how recently?

Does this unit have any upgrades that the 183 model does not?  

[Chris3k2]

It's never had any price reductions. It was first spec model home they built. The builders broker said there was nothing wrong with.

Only upgrade is the elevation and the fact it's on a side lot in a cul-de-sac. She said there's a premium charge for that. Other than those 2 things that's it. Oh and a fireplace.