I’m a first-time homebuyer in a high cost of living area. The home I’m looking at is listed for $900,000, and I’m offering $880,000 with a seller credit of $10,000 for closing costs. My down payment is $88,100 (10.1%), and I plan a 21-day close.
The house has a 12-year-old water heater, and the sellers took the fridge. It has been on the market for about 2 weeks. Initially, I thought $900,000 was too high, but now the sellers’ agent asked if I wanted to make an offer because they have contingent offers.
Comps in the neighborhood range from $790k to $855k, but this house is the nicest in the area, fully remodeled with paid solar and other upgrades. The sellers have already purchased a new home.
It’s a good sign they contacted you, but since the house has only been listed for two weeks, it could go either way. Hopefully, you’ll at least get a counter.
Who cares what you consider ‘fair’? Offer what you think is correct based on your needs. The seller will take it or leave it depending on their motivation.
Since they reached out to you, your agent should have asked what’s important to the seller. If you feel good about your price, go for it and consider setting a time limit for acceptance.
I would definitely make your offer. All they can do is say no or counter. Consider asking the seller to buy down your interest rate instead of just taking the credit for closing costs.