How much to offer for a house is an inexact science

Q. We are looking for our first home, and we would like some guidelines on how much to offer when we find the house we want. How much bargaining do sellers expect? Any advice will be appreciated.

A. It all depends.

Some sellers may need a quick sale; some set a realistic price because they dislike bargaining. Others may add on an additional "let's-just-see" percentage above what they're really willing to agree upon.

Start by gathering information about recent sales nearby (comparables). Ask how long a property has been on the market. If it has been listed at the current price for months, it's probably not worth what's being asked.

If you really want a newly listed property that seems to be getting a lot of buyer attention, don't fool around. If an agent suggests you offer an amount above the asking price, and do so right away, give the advice serious consideration. Right now, in this area, it's a seller's market.

Some buyers think they should make their initial offer low. They expect the seller will counter with a lower amount; they will then come back with a different figure; and the bargaining will go on until the two sides reach an agreement. But it doesn't always work that way. Too many counteroffers will usually kill the deal. Emotions begin to rise, somebody says, "It's not the money, it's the principle of the matter," and there it goes.

As a general rule, make your initial offer close to what you will really pay if you have to, and high enough to tempt the seller to get the thing over with then and there.

Q. Is it possible to sell a house as is? I have a home for sale. There is no mortgage remaining. The buyer will be financing the purchase through a bank. Would a home inspection be necessary if the home is appraised above the loan amount? The house may have city code issues, but there should not be any structural issues or infestation or other fatal problems.

A. Of course it's possible to sell a house as is. Just about anything will sell if the price is right.

I suspect, though, that you are asking whether or not an institutional lender will give a potential buyer a mortgage loan for a property that is not up to the local housing code. The answer is no. If there were code issues, it wouldn't matter what value the appraiser estimated.

In that situation, you would have three options:

• Hold the mortgage yourself.

• Offer a bargain price to an all-cash buyer.

• Bring the property up to code and hope that any other problems won't prevent your buyer from obtaining financing.

Q. My family lives in the city of Rochester, New York, and is interested in buying a home. We are currently finishing year one of a two-year lease on a flat, which we originally wanted to live in to give us time to look at different neighborhoods before buying a home.

Now we think we would like to buy sooner, largely because we have a child with a disability. We cannot make health and safety adjustments to our current home because it's a rental. I read a previous column of yours that said seniors are eligible to cut their leases short if they need to move for medical reasons. Are families with disabled children eligible to cut a lease, too?

A. No, not that I know of. But remember there is just a year left on your lease. It may take some time to find the house you want, and then some additional time to arrange financing. Your agent may have some knowledge about the number of months typically involved.

You may want to discuss the matter with your landlord. If he or she would prefer to re-rent your home at a particular time of year, perhaps you can make a compromise.

Q. I am in my 70s, and I am retired. In 2015, I bought a house for my stepson. He has good credit, but he is a musician and he couldn't qualify for a mortgage. He and my wife are also on the deed, but the mortgage is in my name.

Can my stepson be added to the mortgage? Given my age, I am concerned about what would happen if he is not on it when I pass away.

A. You'll be happy to hear that lenders do not call in a mortgage when property is inherited. The existing loan would continue on as is. But let's hope that won't be for many years.

• Contact Edith Lank on www.askedith.com, or 240 Hemingway Drive, Rochester NY 14620.

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