First time homebuyer here. Like everyone else, having trouble finding a home in my price range and within a reasonable commute. I’ve recently come across a couple homes that I like very much, but both are outside my budget of $220k max. I’m tempted to make offers on them anyway, but even the top of my budget would be an extreme lowball for each house. Here’s the situation:
House A: just listed a couple days ago. In decent shape, but needs some repairs (gutters, siding, etc.) All the homes in this neighborhood (which I’ve been monitoring closely) go for $110k-180k, depending on their condition. This house listed at $299k. Both my agent and I are completely baffled as to why it’s double the average price for the neighborhood, especially since it’s not in perfect shape and is the same size as the other homes. There is literally no discernible reason why it should be priced so high. Nonetheless, I love the house and I think it would be worth the high end of my budget. But offering 25-35% under asking price just seems insulting, especially since it just listed. Should I just wait and see if they come down in a few weeks? And potentially risk losing it to some out-of-town over-spenders?
House B: been on the market for almost a year. This one listed last Sept at $350k; in Oct they dropped to $325k, but no movement on it since. Again, offering $110k below asking just seems like a massive insult. But on the other hand, it’s been nearly a year and hasn’t sold, so surely the sellers will be motivated? But then why haven’t they lowered the price more on their own? Another concern (and this goes for both houses) is that even my lowball offers will be near the top of my budget, so no wiggle room if sellers counter.
Any advice is appreciated, especially from those who have successfully made extreme lowball offers. Sorry if these are really novice questions; I feel like I kinda know the answer already (these are way out of my price range and I need to just forget it, duh). But I also don’t want to rule out possibilities, and don’t want to keep pestering my agent for guidance (agent’s advice is pretty much “it’s whatever you want to do”).