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New Member

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..

2 REPLIES

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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.
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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.