Jan
12

Buying a home from a relocation company?

Question: Buying a house thats selling thru a relo company?
I’m interested in buying a house that is listed for sale at $ 425K. The price was reduced from $ 450K. I tried to do some research and found out that the house was purchased in the late 199o’s for $ 230K (not that it has much to do with the current value). I know that the owners were company-relocated and a relocation company is now handling the sale of the home.

I think the house is slightly overpriced. 

Is there any place where I can find out how much the relo company paid the owner? This information would be incredibly helpful in determining the offer I make on the house. Would $ 385K be too low-ball of an offer (90% of asking price)?

Answer:

It is not a matter of how much the house was purchased for in the 1990’s or even how much the relo company paid the homeowner.

If you are really interested in that house, I suggest you get an experienced Realtor to provide you with comps of active properties and recent  sales.  That’s the kind of information the relo company will use in deciding on offers.  Every market is different. Guessing percentages is not a way to determine a property’s value. Find out whats going on in that area and then you can make an offer with the values as a guide.

Add your own answer in the comments!