How much less than the asking price should you offer when buying a home?

Question

I know it varies, but is there a rough estimate? Especially when there is a big variance between the assessed value and the asking price?

Answer 1

Assessed value does not always reflect the fair market value. If the house is listed with a Realtor, find your own Realtor to figure the real value. You might want to hire a Realtor to do a Fair market analysis if the house is not listed and is a "for sale by owner".They do those in our area for around $50. Secondly you could hire an appraiser to do and independent market value. I do this in our area for $250. I hope this helps.

Answer 2

Echoing an earlier post, if the house is listed with a Realtor, find a different Realtor and hire them as a buyer's agent. If the house is listed with a Realtor, you should be able to hire another one as a buyer's agent AT NO COST TO YOU. The buyer's agent's fee is paid by the listing agent under a cooperating brokerage agreement that is part of nearly every MLS system in the country. Also, there is almost never a savings to you as the buyer to make an offer through the listing agent, so you might as well get a REALTOR to help look out for your best interests and provide you with as much information on prices as the seller has...

Answer 3

Definitely offer less than you are willing to pay. Because the seller will most definitely counter the offer with an increase.
Go low, but still be reasonable.
You are right - it varies. I personally take off at least 5% of the asking price - at minimum.
Remember, the real estate agent actually works for the seller - but is obligated to present any offer that you give. And don't forget that you can also negotiate things like appliances and certain types of furniture.

Answer 4

Assessed value is the value given for taxation purposes and is most likely way below market value. To get a general range of value you should consult a good buyer's agent to prepare a CMA. If you want a specific value for your property you should hire an independent appraiser. When you look at the comps in the area and if they are way below the asking price I would offer below the comps and slowly make my way up to the comp values. If the comps are way above the asking price; good news it's a great deal and I would offer full asking price before someone else snatches the deal up before you do.

Answer 5

i addressed assessed valuation in the past. that has absolutely nothing to do with the asking price. it is used to assess real estate taxes fairly to all properties in the area.

everyone is sophisticated, buyers and sellers, these days. listing price is normally not higher than similar homes in the area will sell for if that listing price range is given. a few variances exist, such as when a brick bungalow is on a corner instead of the middle of a street: more sunlight.

if you are talking of a SINGLE FAMILY HOUSE, in 200 years of our history in the united states, it has ALWAYS been the no. 1 seller: it sells closer to listing price than anything else, sells faster, and in almost 100% of the sales, there is no seller financing to help a buyer.

in my market, single family houses normally sell for about 94% of the listed price, sometimes 96% (seller's market). also in a seller's market, they will sell for greater than list price. but you are at a distinct advantage now in that it is a buyer's market.

so you do this: pretend the house is listed for 300k. you offer 90% of that, which is 270k. they counter at 285k. this should make a deal for sure.

but get the advice of an agent, and hopefully work with an experienced agent. because if you are buying a condo, for example, the listing to sale price ratio is a little bit less.

may you have happiness in your house!

Answer 6

You should first determine what such a property is worth in proper condition. It may already be attractively priced due to the upgrades needed. Engage the services of a real estate buyer agent who will provide you evidence of recent sales, by which you can gauge market worth.

Answer 7

in negotiating an offer, you must consider...

1. the maximum you are willing to pay
2. what your best alternative is

throw a number out there that is an amount you are comfortable with. if you can't live without that house, then you may end up paying close to your maximum.

if your lower-than-maximum offer is accepted, then consider it a win for you.

make sure your best alternative to that house is reasonable. there are plenty of options out there.

Answer 8

2/3 rds of asking if really want it! if not offer half and go from there. their counter may surprise you!

Answer 9

Offer what you think it's worth to you, if they don't want to take it, walk. There's plenty of houses around.