Belt Auction

I am first time home buyer and looking a bidding on a house in my area which is VT, what is a good bid?

The house I'm looking at is an asking price of $179,500 and it is assessed by the town for $145,300. What would be a good bid to put in on this property? I think the price is comparible to other houses sold in the area. I know that realtors leave room for lower bids though.

Public Comments

1. assessed value is NOT market value - it is only used for tax calculation purposes - check online real; estate sites and see what house similar to that one are listing for. Typically anything less than 10% below initial asking price is not considered a serious offer, but find out how long the house has been on the market. If it's more than 5 months, may be priced too high for current market conditions
2. I do hope you are working with a realtor. There are too many things a first time buyer with no experience can screw up. They would be able to tell you what to bid. I'd probably go aabout $150,000 and wait and see.
3. Well if you are considering buying this house in an area that houses are worth 145,300 then offer that. If you offer more and the lender goes out and looks at the property and says we will lend you 145,300 you make up the difference then you are screwed. So just ask what the top market value is and dont pay more for a house that is not worth your time. No matter what the people put into it. Its like a guy who puts rims, radio, body kit paint job etc and then wants to sell the ford escort for 35g. It aint going to happen.
4. If you believe the home is worth what the asking price is, why wouldn't you offer that, ok offer 3% less. Do you realize that when you offer a lower price, that home now becomes worth only that lower price? Now you will own a home worth less than asking which translates into lower value! No Realtors don't leave room for lower offers. They try to price the home according to what is going on in the market place. The homeowner is generally the one that banks in a few extra bucks! lol Sorry for preaching!
5. You are in luck buying your first home now. It's one of the best times in recent history to be a first-time home buyer. In almost the entire country, we are truly in what's called a buyer's market. In other words, the buyer sets the price. So, I recommend checking out online what homes have sold for in the area and offer what you think the seller will accept. Honestly, few people offer the asking price today, but if the house is worth it, maybe the asking price is low. I live in Michigan and it's not common for homes to sell for several thousand (and I'm talking 10s of thousands) less than asking price. Keep a few things in mind. How long has the house been on the market? How much have similar homes sold for? What shape is house in? Do you have to do repairs or is it ready to move in to? These things can help you come up with a price. Go low and see what happens. All the seller can do is either counter-offer or tell you no thanks and you can put a higher bid in. I've included a link to Yahoo Real Estate where you can get an idea of a home's worth. And finally, don't pay attention to assessed value. That is used for taxes and trust me, if you buy the house for 179k, they will almost certainly raise the assessed value to reflect the purchase price. My house doubled in assessed value right after I bought it. And so did my property taxes... Good luck with your first home!