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How low can offer below an average list price in Southern California real estate?
I'm looking to buy a flat 2 bedrooms and 2 bathrooms in Chatsworth, California, listed at $ 329,000. If there are any realtors reading this, how can detach usually the list price? (I know this depends on the seller, but on average). What would be a good a good offer for the property? There are other benefits that could be negotiated? (Free HOA for a certain time, etc)?
As the value of a property market slowdown? market housing continues to fall. Now we can calculate the true value of a property with ease. As prices decrease, we need not guess and the assessment factor potential price while calculating the value of the house. Without the assumptions, the figures are more accurate. Let's use the following example: Today, a typical 15 years old, two bedroom apartment / house is priced at around $ 500.000 and $ 550.000 in Sunnyvale, California. Rent for similar / house is $ 2000/month. If you are a homeowner, $ 2,000 / month in rent between $ 20,000 a year in benefits ($ 24,000 per year in rent, $ 4,000 less maintenance costs). An income of $ 20,000 to own equilevant bonuses of $ 400,000 or CD, as the current performance of U.S. treasuries 30 years are 5% (5% of $ 400.000 is $ 20.000). CD Bank have similar yields. In our example, two-bedroom apartment / house is 20% to 25% surcharge. Should be priced at $ 400,000. It is interesting to note that again the calculation from the buyer's perspective, rather than the seller's perspective, the figures are even more striking. Mortgage payment consists of two parts: interest mortgage and mortgage principal. The portion of interest income is similar. If you pay interest, it disappears and does not add the equity of the property. To fully simulate rental properties, we assume buyer applies for a loan zero down, interest only. It turns out that the rent of $ 2000/month is equivalent to the payment of $ 340,000 mortgage loan at 7.0% APR. And the comparison of loan $ 340,000 to $ 500,000 or $ 550,000 price tags, in view of the buyer, apartment Two bedroom / home is 30% to 35% expensive. One may wonder, why is there a discrepancy between two views of the buyer and the owner? The discrepancy is a result differences of 2% interest rate that the buyer paid compared with income from bonds and certificates of deposit that the owners would receive. We understand that the buyer will always pay more. That is the purchase premium property. However, looking from the perspective of the homeowner, the current housing market probably 20% to 25% expensive. We recommend investors to wait for a better entry point.
