I had a client that was looking at $199,000 condominium in Milford. They sent me the zillow fact that the home had sold last year at 145,000. The condo was owned by a 95 year old women so I am sure the whole condo was in rough shape and dated. My client and her family was of the opinion because the home sold for so little last year they could make a lower ball offer because of the last sold price.
Unfortunately if you are the buyer that could have disasterous results for you if you really want the home. My client wanted the home. So I did some research on the condo complex and looked up the same 1st floor condos with the same square footage that had sold in the last year. I found three of them. Those condos had sold at $196,000, $199,500, and $203,000. And 2 of them did not have granite in the kitchen or a finished basement like the one we were looking at did. So the condo was listed and priced right.
Then I took the time to explain to my client what the seller had into the property that most people do not think about.
$175,404
So the flipper had a lot more into the home than my client at first thought. I took the time to explain why a flipper/investor is not just going to take any low offer when they know what the true value is. This is why it does not matter why the last price doesn't have a lot of impact on the new listing price.
It boils down to what the home is worth today. Just because somebody else got a deal they are not going to pass the savings onto you. Especially if their business is flipping homes. The flipper is out to maximize the amount they can make.
I hope this helps you understand on how to put in an offer.
Check out these 6 links on other webpages that I have written.
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