Negotiating a good price for a house (Buyer)?

Question

I shop for 3/2 house in South Florida (Boca Raton-West Palm Beach). My strategy so far in negotiating purchase price for the houses was to ask 10% less than list price, slightly less than the price you would get if you multiply sq.footage by slightly less than average price per sq. foot in the recently sold homes. My realtor tells I should better concentrate of "value" whatever this means. By take in current buyer's market MY strategy is a good one. Should I push my Realtor more to be tougher in negotiations?

Answer 1

There are some different things for you to consider when making an offer on a home. 1st - How long has the home been on the market? 2nd - How eager is the seller to sell? (Is the home vacant, are they in contract on another home) 3rd - How much do you like the home (is it your dream home, or a home you'd be happy with for just a couple of years) and 4th - What are the other homes in the neighborhood selling for?
While we are in a buyers market, sellers aren't just giving up their homes. They have a value/price in mind too and may have purchased during the boom and need to net a certain amount. Your realtor shouldn't push you over what you feel the value is on the house. Unfortunately, there are a lot of realtors that push their buyers in to offering more so they can get that contract, if your realtor isn't working for you there are many more out there! Good Luck!

Answer 2

I don't know how that market is right now, or how the Realtors there price the houses there.

In San Antonio, Texas, when it's a sellers market, the list prices are higher. When it's a buyers market the list prices are lower. The percent off list price that you end up with is about the same either way.

But all in all, your Realtor is correct. You need to stop writing offers by numbers, and look at the value of the house itself. If one you really like is worth $120,000 and it's listed at $110,000....... and you offer 10% lower, you don't get to buy the house, and missed out on a great deal. If another house is worth $80,000 and it's priced at $100,000 and you offer 10% off list price..... you just way over-paid for the house!

Ask your Realtor to help you figure out the actual value of a particular house, and offer a bit under that - if the seller's situation warrants it, you'll get a deal. If the seller would rather wait, then you move on.

Good luck.

Answer 3

Your strategy is a good start, but I would prefer to look at the comps on the house and then look at the house and see if there are things that detract from the value, justifying a lower price. If it truly is a buyers' market, you should be looking for a better deal than 10% off asking price.

I would be looking for a new realtor if I were you - one who is more aggressive and more experienced in negotiating the best price for you.