What is the bargaining margin between the asking price and what i should offer as the buyer for the house?

Answer 1

There is no definitive "bargaining margin" when negotiating the purchase price of a house. The best you can do is make an offer. If the seller may not accept your offer, but may indeed counter offer with a lower price than that which was originally asked. This dance goes back and forth until an agreement is reached.

Good luck with your home purchase.

Answer 2

It really depends on the house. In a given neighborhood/area, a house with a certain square footage in a certain condition with certain features will sell for a certain amount of money (in general). That is why many real estate agents will do a market survey for "comparables" to get a good idea of what similar nearby properties have sold for, to give the seller a realistic selling price.

That said, a seller may want to ask for more than "market value" for their home (you can always ask high and come down on price later). Or some sellers might need to sell quickly, and price their home closer to it's true market value to produce a quick and easy sale.

As a buyer, your job is the same. You need to research what similar homes in the area have sold for. That way, you'll have a good idea what other people will probably be willing to pay for the house you're looking at. Keep in mind that if you make too low of an offer, another buyer might make an offer higher than you that the seller accepts and then you don't get the house you want.

I'm sure the average margin these days between the bid and asking prices is pretty small...probably less than 5% in most cases. You just have to do some research in your housing market to see what's happening and make your best judgement on what a given house is worth, and make your bid offer accordingly.

Answer 3

It's what you can afford and what it's worth and how bad you want it.. Have you checked out simiular homes in the area? A realitor can tell you what the square footage -per foot is worth. Remember the realitor is making 6% so there is a margin you will cut into as well.