I found a home I like. The seller(also a realtor) bought last year for 87K did some improvments and now wants to sell for 179,900. How do I know what to counter? What should I pay for as far as closing costs as the buyer. I will make an offer of $163 since roof is 15 yrs old. Want to make offer since my realtor says she has a client that wants to see the property I want..


Well, really no different then if you walked in to any property that wasn't a remod. Your Agent can run the comps for homes in the area with similiar features/upgrades and condition. The only difference is when you normally count on homes appreciating say 6% a year in this particular area and someone completely upgrades the home, you can't rely on appreciation alone for how you should pay. I would just find similiar properties. Good thing you notice the roof. I know that a lot of people who upgrade a home often forget important things like water pipes and electric and roof (non sexy items). Next is the windows which set you an average of $500/window. So good your looking at those things and your offer and counter offer can mention credits for upgrades the inspector finds that should be done.
Sounds to me like your Broker is using a scare tactic. She/he should know how much u should offer. An appraisal would help and or a website that does a comparative market analysis. You also want to look at all the homes in the area and see what they have sold for recently (1-3 months) and all the current homes for sale, and what they are listed at. Look at those homes features, # of bedrooms, bathrooms, lot size, square footage of the house, etc. Compare the properties in the neighborhood. It also depends on the status of the purchase, was it a foreclosure? a bank owned property or a short sale? If so then she purchased it for well under value.