should I ask for points paid or just closing costs? How much below the asking price is standard?
2006-08-02 02:18:12 · 9 answers · asked by k8melanie 1 in Business & Finance ➔ Renting & Real Estate
Here are some tips:
1. How long has the house been on the market ? If it is more than a month. Then you can go for a lower price.
2. If you want to bid less than the price you should provide explanations why you do so. Maybe because the condition of the house is lower than other houses in the same category...
3. It is better to buy in low season and sell in high season.
4. How are the houses in the neiborhood ? If there is a noticeable difference then you should lower the price.
5. If anything needs to be fixed, estimate the cost and lower the price accordingly.
6. Check if the people are in a hurry. This may be your chance to get a better price.
7. Analyse the bottom price of any similar house before making any offer. One good indicator is recent purchasing made of similar houses.
2006-08-02 02:52:12 · answer #1 · answered by roy_s_jones 6 · 0⤊ 0⤋
You might have a real estate agent represent you as their commission is paid by the seller. If you don't want to go that way, ask that the seller pay your closing costs. Some lenders allow a 6% seller contribution. You might check sales comps for similar homes in the neighborhood and offer a bit lower than what they are asking. If you are planning to obtain a mortgage for the home an appraisal will be required anyway. If it comes in way under the asking price, you still have negotiating room. I am a loan officer...website below, happy to answer any more questions!!=)
2006-08-02 02:54:07 · answer #2 · answered by staceydian 2 · 0⤊ 0⤋
It would be an insult to offer less than 5% unless you feel that the house has been on the market for a long time, or overpriced.
Are you buying this for yourself, or flipping? When you want a house it is important to offer what you think will close the deal.
Unless you plan to put a lot of cash into the deal, most people are willing to wait for the price they have listed. The problem is that most people have to add the agents commissions to what they want to get out of the house.
If you offer the full price of the house and look like you are serious (cash into escrow, short escrow time) they are probably willing to pay some of the costs you would normally pay.
2006-08-02 02:52:32 · answer #3 · answered by Caroline C 1 · 0⤊ 0⤋
Look around in the area you want to live compare what it was six months ago and what the price is now. If the house is to over priced compared to the others in the area try offering the price on avg for what the other houses are listed at. If you feel the price is a good price and you still want to offer less find out how long the homeowner has lived there the long they have lived there the better off you may be in talking the price down.
2006-08-02 02:25:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Are you pre qualified for the loan? That is key to getting someone to accept your offer. Closing costs are typically paid by the buyer. Sellers will not pay points as that is to your benefit to buy down your rate.
Someone who has been transferred, divorcing, or are in preforeclosure are desperate to sell so these are better candidates for you to pursue to get a good deal. These people may pay the closing costs or split them with you.
Take a look at the window treatments, lighting fixtures, appliances. If these are to remain make sure it's in the contract.
I've seen lawsuits filed when they were not in the contract, and were not left in the house when the buyer assumed they would be.
All the advice above is very good as well.
2006-08-02 03:13:48 · answer #5 · answered by Credit Expert 5 · 0⤊ 0⤋
Nothing is standard in negotiation. Look at similar homes in the area, see what they sold for (these are public records, depends where you live to find them, around here it is the county clerk). Then inspect the property and make the appropriate adjustments.
You also have to take in account what you can afford.
Before making an offer, find out your target price, and you absolutely highest price you will pay. Make your first offer lower than your target. You want to have something to concede if the seller makes a counter offer.
2006-08-02 03:23:22 · answer #6 · answered by Christopher 4 · 0⤊ 0⤋
Talk to a buyer's agent about the offer. They should not only help you with the price, but in writing the rest of the offer to avoid pitfalls.
Talk to a loan officer about the loan. There is always a trade-off between rate and cost, and the best loan for you depends upon how long you are going to keep it, the state of your credit, etcetera.
There's a lot of good information here
http://www.searchlightcrusade.net/
2006-08-02 03:10:27 · answer #7 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
Hi,
The thing we always do is hiring a buyer's agent, they are like real estate agent but they act on behalf of buyer's, it will save you heaps in the long run
good luck
Rizky
goldenopportunity.acnrep.com
2006-08-02 02:28:57 · answer #8 · answered by kikitielman 1 · 0⤊ 0⤋
Sounds like you need to hire a real estate agent who can give you the advice you need based on your specifcs.
2006-08-02 04:31:20 · answer #9 · answered by akc1106 4 · 0⤊ 0⤋