I want to buy a home for retirement. I am looking at lots of options, mostly focusing on the locations that appeal to me.
I see lots of Zillow estimates of homes that look like great deals to me. Are these estimates accurate, even though similar houses in the same area that are for sale are usually priced much higher?
If so, is it realistic for me to try to make offers to owners that do not have their homes listed? Would a realtor even consider helping me do this?
Or, do these values indicate that the houses listed for sale are overpriced, and I should just lowball until someone accepts? Are houses today tending to sell far below list prices, or ???
Making offers on houses not listed for sale.
byu/chewybrian inRealEstate
Posted by chewybrian
6 Comments
No, unfortunately they are not accurate.
Anyone who would consider selling is going to look at recently sold prices, not a Zillow estimate.
Yes, your realtor can help you find the owner information of off market properties and contact them to let them know you’re interested in buying. However, you should expect to pay a premium for a home that isn’t even listed because it means the owners don’t currently want to sell. You’d need to entice them to sell with a very attractive offer (not a low ball).
It’s also likely that the houses that are listed are overpriced. In my region (and many across the country), many houses are sitting on the market for 3+ months and require multiple price reductions before they begin to get traction.
There is nothing wrong with offering what you think a property is worth but you need to have thick skin, not get emotionally attached to houses, and you need to have patience. Many sellers will act offended when you offer below list so you need to be able to just accept it and move on to the next one.
The ones that are not listed for sale are showing the Zestimate based on the last recorded sale, which could have been ten years ago. Look for comps listed for sale in your desired area; they will show you the market value, then make an offer based on the actual comps.
No, these zestimates are not accurate. No, the owners won’t sell for that price because as soon as a stranger approaches them from the street and offers that price they will think it’s too low. And No, a good agent won’t help you do this because it is a tremendous waste of time. It would be like deciding you want to buy a Toyota Camry and then just approaching all the Camry owners in a parking lot, regardless of whether or not they want to sell their car.
No, Zillow is not a good way to determine value
Yes, an experienced agent can help you determine basic value.
When making an unsolicited offer on a house that’s not for sale, you do have to be careful about the condition of the house on the inside Because you can’t see it you have no idea what you’re making an offer on. Google the house and see if you can find old Zillow photos. Or old craigslist photos. That might give you some help.
Most people don’t just randomly want to sell their homes and move. If you’re approaching them, be prepared for the fact that some will not want to be bothered.
When people do show interest, maybe you’ll be lucky and you’ll find someone who was thinking of selling but hadn’t started the process yet. You also might find someone in financial distress who needs an easy out, and they might be living chaotic lives that will manifest as chaos around the closing process.
You’re unlikely to find someone who is as motivated as you are to get the deal done, so you’re less likely to get concessions if your inspection comes up with any issues with the house. They’re also less likely to accept a price on the low end of what they think the house is worth.
I get spam calls all the time from people wanting to buy my house. I hang up on them as soon as they start their spiel. Don’t take it personally if you get the same response from some folks.