price deductions on a house

[Smurfette]

LHF68 and I have found a house we are interested in buying.

However, we think the price tag is high considering certain things about the house. Some basics-- The house is located in Cherrywood, built in the 1950s. It is a 3 bedroom, 1 bath. It is in good condition, and the kitchen has had a very nice remodel. We can see in the house a way to add on and also to add a 2nd bathroom in the long run without major remodeling needing to be done to the existing house.

I'm intentionally not mentioning the asking price because I'm curious what people would think is a reasonable deduction for the following things. Also, the asking price would have been considered very reasonable 2 years ago before the housing market started facing the crunch we are today.

How much would you want to deduct for the following things?

1. Out of date bathroom in need of remodeling
2. the fact that there is only one bathroom
3. Outdoor Washer and Dryer-- meaning you have to go outside to a little storage area in the back of the house to get to the washer and dryer
4. Windows need to be replaced w/ newer windows-- although in decent condition, it still has the original wood-frame windows
5. Deck in need of some TLC- trelance needs repair around edges
6. AC drain onto stairs-- there is a concrete stair that leads from the back door to the back yard, about 8 steps.
7. Backyard not enclosed by fence
8. Painting-- drops on doors,windows, and floor
9. Cracked tiles in kitchen
10. No door on closet in middle bedroom
11. Somewhat close to railroad tracks, (roughly 100 yards)

Thanks for any advice

 

[RichUT]

I don't think it is that simple. The sellers aren't going to care why you are coming in under their price, they just want to know by how much.

Do your homework on comps in the area and note the amount of re-model work that has been and needs to be done on each.

Come up with a fair price on the home you want based on that, and offer it to the sellers. The process will take its course from there.

 

[Smurfette]

Our agent is running comps today. Thanks

 

[K-Man]

One thing you can do is offer as if the repairable items were already fixed and ask for a separate allowance to fix those items. It's essentially the same but gives a list and value of the items in question.

The RR tracks may see more traffic once light rail starts, but I don't know how loud it will be.

There is a home on Crestwood that just switched from by owner to Realtor.

 

[zzzz]

Living in Dallas, light rail has never struck me as noisy. Found this comment on the web:

In reply to:

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[baboso]

Make sure you get a good home inspection done. It's worth the 3 or 4 hundred bucks.

 

[sawbonz]

if you've never lived near rr tracks, you might want to try to be in the house when a train rolls by. 100 yds seems like plenty of distance, but if you are near an intersection you'd be surprised how far that horn will carry. Not fun at 2 or 3 AM I assure you.

 

[riloh05]

Is time on your side. If so I would wait. We looked for almost a year before we purchased- that was a whole year we were willing to pull the trigger just not tire kicking. Thats too long of a list for me to sink money into. Also, the outdoor w/d shed is a deal breaker. If time is not on your side ignore my post.

 

[Smurfette]

well, time is and time isn't. We're in a lease until the end of the year. If we did a 60 day period we would have to pay house payment plus rent in December. When we leased this house last fall, the understanding was that we could only live here a year because the owner wants to sell. Now that the market sucks, they might be willing to let us stay.

Thing is, we really loved this house. We're willing to live w/ the kinks for a time until we save back up after making the down payment.

 

[riloh05]

If thats the case from my experience as a buyer over th past year is dont expect a significant reduction. you and i as buyers may be able to make sense of the reduction for whatever reasons but the seller will not see it as we do. it is a buyers market right now, but if you are looking in "prime" or "popular" neighborhoods the value doesnt drop. have you exhausted new homebuilders? if you are on a 5-7 year plany there is some instant equity to be had out there. furthermore, if you can find a spec home you like you can really walk away with a "deal".

however if this is THE home price,problems,etc... are a non issue. that is until the inspector comes. hire 2 inspectors one who is an engineer and the other who is a regular inspector that has come recommended. my .02- good luck.

 

[pulque]

Never buy your largest investment out of emotion! It is becoming much more of a buyers market. Take your time. Find a deal that will reward you down the line and not be a continual cash drain...Good luck! One bath is a pretty big hickey...

 

[alden]

FYI, I bought a 1949 2-1 in Cherrywood about 1.5 years ago. Been working on the house since then. I love the neighborhood!

The things you mentioned do not necessarily mean a deduction in price. Those are all obvious things and are the type of things you'd expect in an old house. What you are more likely to get deductions for are non-obvious things revealed by the inspector. For instance, I got about $2.5k off because the foundation under my bathroom floor was rotten (not a biggie since I was going to redo the bathroom anyway). But the inspection and subsequent negotiations comes after the initial offer.

I would argue that it's ok to let your home be somewhat of an emotional decision. Yes, it's possibly the largest investment you'll make, so you should make sure you're not getting ripped off. But you'll also be living in it, taking care of it, and probably remodeling it. That's a lot of your time and energy, and all that will be much more pleasant if you like the place.

If you're thinking of remodeling or at least fixing it up, just make sure the existing structure has a good layout. Everything else can be fixed.

Like other have mentioned, use the comps to gauge your offer.