Hi we are looking at purchasing a spec home and want to make an offer below their asking price.
What is reasonable?
It is in a very fast growing community outside of Houston. It is also 1 of 4 homes left in the section by this developer. They have marked it down a few thousand but we still think we may have room to work with. We will have to purchase a frig, sod the back yard among a few other things.
Any advice? We want to make an offer today but just don't know how to figure out a fair price and how to present it.
Thanks.
2007-03-26 04:17:30 · 7 answers · asked by rsf 3 in Business & Finance ➔ Renting & Real Estate
Ask the realtor what the ***list to sale*** ratios are... They should ***absolutely*** know the answer to this question and if they don't ... make them find out. This will tell you what the market is doing and let you know what to ask...
But
Keep in mind you still want to negotiate.. so if you are looking at 94% you know you can probably get this home for 6% below asking price.... so start 10% lower
10% lower than asking price is never considered an insult and always a good place to start... It is also safe to start about 5% lower than the ***list to sale ratios****...
Keep in mind a *SELLERS* broker can not help you with pricing whereas if you have your own *BUYERS* Agent then they can assist you in pricing and where you should start your negotiations
SEW GOOD LUCK
Realtor for 12 yrs
2007-03-26 04:30:39 · answer #1 · answered by H.O.T. Dog 6 · 1⤊ 0⤋
You said it is a fast growing area and they have only four left in that sub division. That indicates that it hasn't been on the market very long. Generally the longer the house is on the market, the more likely the seller is to negotiate. The interest on 4 homes is however eating into the builder's profit on the development and he can't really afford to do a big advertising spread for 4 homes.
I think, just to test the water I would offer him 10% less than what he is asking. He probably won't accept it but he may counter with what he will accept. I am thinking that about 4 or 5% is what you can expect as a reduction but it doesn't hurt to try for more.
2007-03-26 04:30:34 · answer #2 · answered by don n 6 · 0⤊ 0⤋
The national average is 3% of the total amount that it is for sale. So go 3% below and see what happens.......10% is way to low and you can p*** them off and they won't consider another offer if you go that route. They will just counter back at full price! They've adjusted the price you say.....due to the fact of what needs to be finished.......so if you want the house that bad pay the price........but go 3% lower. That's a safe offer!
2007-03-26 04:29:48 · answer #3 · answered by noodle 3 · 0⤊ 0⤋
5-10% is a normal first offer. 10% is NOT too much to offer, and you WILL not p=== most people off. But, if you think its a good deal, try like 5 to 7% below the asking and see what happens. Because if they are getting alot of offers they will ingore anything that is really low.
2007-03-26 04:39:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Do you have an agent? If so, then have your agent do the negotiations on price, on what's to be done on the lawn,and those other few things you want. And you need not worry about paying your agent as they are paid by the seller unless of course, you hire the agent as exclusive agent - meaning working for you, the commission rates will be on the 3%, which is as always negotiable. Always get a real estate agent who is a member of the National Association of Realtors. Let that agent work for his/her commission.
2007-03-26 04:53:21 · answer #5 · answered by RE-AGENT 2 · 0⤊ 0⤋
you may ask for some thing. First, your "10% downpayment" won't be able to be paid by technique of the builder or any seller. it really is the quantity of funds you opt for to go back up with. besides the indisputable fact that, you will get loans with purely 5% (or maybe 0% down). The builder pays ultimate expenses. The builder can grant you with free concepts, The builder could even decrease the fee of the residing house. besides the indisputable fact that, builders HATE to do some thing which will decrease the fee because this can harm apprasials. free concepts, paid ultimate expenses, procuring down the interest cost or maybe having the builder pay 3-6 months of your loan funds are honest sport. besides the indisputable fact that, keep in mind that your lender could reduce the quantity the the builder pays quickly (ultimate, cost purchase down or paid loan funds). many times with 5%-10% down, the seller can purely pay as a lot as 3% of the sales fee. With 10%+ down, they many times pays as a lot as 6%.
2016-12-02 20:22:08 · answer #6 · answered by blacker 4 · 0⤊ 0⤋
Go another 10% below their reduced price - that is reasonable plus if they decline, you can always up your offer.
2007-03-26 04:24:30 · answer #7 · answered by tomd111 2 · 0⤊ 0⤋