when making an offer on a home?

Question

how far below the asking price would you go with an initial offer?

Answer 1

It all depends on the value of the home vs. the asking price for the property. You need to work with your Realtor to find out how much the home is worth, in relation to the other homes that have sold within the past 6 months in the area. Then, take that number and compare it to the asking price. If they're the same, maybe you can offer 2 - 3% below the asking price.

If the asking price is substantially above the actual value of the home, you should offer very close to the actual value and have your Realtor give these comparable properties to their Realtor with the offer. This way the seller can see how out of line their asking price is.

It stinks that everyone thinks that you have to offer below the asking price for a property every single time, but if you use the above information, you should be able to get a good deal every time. If the seller doesn't want to sell at a reasonable price, you don't have to accept their counteroffer and you can walk away.

Best of luck to you!

Answer 2

Millions of dollars are wasted every month nationwide because the buyers didn't ask themselves this same question. Some have also missed out on their dream home by offering too little in a hot market. I look at market time and comparable home sales and validate my offer by showing a strong case supporting my estimate of value. If a seller, for example, thinks their home is worth more than fair market value, I won't reward that by paying for a poor opinion of value made by a listing agent trying to get the listing. I will make my offer based upon a market analysis that supports my offer. I also show my letter of loan approval not just a mere pre-qual, and, a cashiers check reflective of funds needed to close. The earnest deposit is a 2nd cashiers check but the initial deposit is on a promissory note to be replaced by the cashiers check within 24 hours of removal of the inspection contingency. I also include a net proceeds to seller estimate based upon my offer. By being a ready and able to close, strong buying candidate I have always gotten win - win deals for over 20 years both as an investor and as a realtor representing a client.

Answer 3

Depends.

How long the home has been on market. How many offers have been written on it. Has it been taken off and put back on. The market analysis on the property, the amount of work it needs to be comparable with its neighborhood. Is it a bank or a private seller. Are you asking the seller for concessions? Do you have your finanincg pre-approved?

if they are desperate, and the house needs TLC, well I would say lowball by 10, maybe maybe 15%(in rare cases). You dont want to piss them off. But I am not a Real Estate agent, so consult yours.

general rule of thumb-the dumpier the property, the longer its been sitting, the more desperate the sellers===the lower your offer.

Answer 4

That varies depending on the reasonableness of the asking price. Some are in fantasyland and some are playing it straight.

Think of it like buying a new car, and their price is like the sticker price. You don't want to pay MSRP.

Look at the assessed value of the house. Deduct the cost of any needed repairs. See what you can work out with them on paying points, too. This isn't just about the house, it's about the financing. Any concession you can get is money in your pocket.

Answer 5

Maybe 10%, unless you really want the house and it's in a fast-selling area, then sometimes even the asking price won't be enough.

If you think the house is very overpriced, or it's been on the market quite awhile, you could try an offer even lower.

Answer 6

Well...depends on the asking price and if its a hot seller right now. Only go 7grand and then go from there. If a lot of people are interested in the house then offer full asking price... hope this helps

Answer 7

There is no easy answer for this.

You need to know what is the final price you would pay for a home and then go low enough beyond that to allow for some negotiation.

This is different for every person.

Generally it is a buyers market in most areas so you are probably in a good position.

best,

cez

Answer 8

This is a question for your agent. Not the seller agent YOUR agent. They have a real good feel for the market in the area and can do the negotiating for you. DO NOT use the seller agent since their obligation is to the seller. Go to: jackosullivan.net for info on Buyer Agents. See the FAQ page and the Links page and stop by the Recipe of the Month page (R.O.M.)

Answer 9

I agree, offer what you want to pay and not play games. If it's an insult to the seller than oh-well. Besides, if you were the seller what would you want? I'd prefer a sincere low offer from a qualified buyer than one from someone who was just "testing the waters".

Answer 10

You go as low as much you're willing to pay for the property. There is no magical formula or % or way of determining this. If you're using a buyer's agent, they should be able to tell you what price to ask for.

Regards