Real Estate info.. How much are they really willing to negotiate?

Question

I am a first time buyer.

Answer 1

There is no universal answer, but the answer which best fits all situations is really dependant upon the offer made and how it is presented. Most agents are poor negotiators at best and fail to structure offers to best represent their clients as the best possible buyer. When you look at the picture from a sellers perspective in the future you will understand why. Negotiating a deal requires a skill that isn't tested to obtain a real estate license. Many agents are good personal marketers but not all agents are competent for the trade they are in. The knack of knowing what to say and when to say it is not an easy skill to master. Some have it and many never will. Properly presented, an offer can build great value to a seller yet be 5 - 15%, or more below asking price. Remember the buyers determine current market value where list prices are suggested value. The actual market value will be determined during appraisal. That figure might not be exact but is considered a qualified opinion which the loan will use as a target. If you make a fair offer that has proper presentation the amount will not undermine your chance for a deal. A seller will counter if they aren't sold on your price offer. Be a pre approved, strong buying candidate with a good negotiator as an agent. Most list prices expect offers to come in close but often the list price was flawed. A good negotiator will prepare a new comparative market analsys that supports your offer to help soften seller objections.

Answer 2

How much is the seller willing to negotiate? I think that is your question?

You won't know until you make an offer and see what they say.. they will either deny your offer, counter offer or accept your offer as is..

The best thing you can do is contact a local Realtor to help get you started. I would be happy to provide you a refferal to a good first time buyers agent in your area.

Best of luck!

Answer 3

Your receiving the typical variety of answers that are all good to a small degree and flawed a bit. Myron gave a good answer but failed to mention sellers motivation has some bearing on the negotiating room. Also some sellers are equity poor and have no room. That is never a condition of actual market value but can affect a sellers bottom line. Godged pitched a good plug for Countrywide lending but in thousands of loans I have originated I have yet to find their rates as a best fit for any client in the last 20 years. The seller has to buy your offer just as you are buying their house. They are looking for items in the contract that give them confidence in your ability to close timely. A pre approved buyer has the possibility but not the total ability to close. Use a well recommended Realtor to prepare and present your offer as the best candidate. Have your agent present your offer to you and decide if you as a seller would bite on it.

Answer 4

First, for the realtor offering to give you referrals, she will receive a percentage of the commission, so that is not a "I'm just trying to help" statement.

Negotiation is dependant on motivation. Sellers that don't need to sell are not going to budge much off their price. Some sellers are very motivated, and will be more receptive to offers.

Start with a lender, one with a company you know, like Countrywide. Don't go to the web, too problematic. Get pre-qualified, but know what you can comfortably afford.

Then select a Realtor, start shopping.

Have fun and enjoy.

Answer 5

In most parts of the country right now, its a buyers market. Talk to some realtors in you area, ask them at what percentage of asking price most properties sell. In my area it was as high as 98% a few years ago. But now its down to 90%. A realtor should be able to tell you how long listings have been on the market, dont be afraid to throw in some lowball offers if a house has been on the market for a long time.

http://mrjjones.net

Answer 6

It depends on the seller. I belong to the Prudential website and I saved quite a few homes and when they are sold I get an email and it tells me what the home sold for. Out of all 18 homes that were sold last month not one sold for closer than 10k below asking, the average was 15k but quite a few sold for 20-25k below.

We are in MA and I don't know what your area is like but that is how it is hear.

Good luck and we have been looking for 3 months (over 30 houses) and it is really hard to find a decent house and yard together.

Answer 7

It depends on the home owner's situation and the market situation. Much of the country is on a downturn and therefore a bit more willing to negotiate, but in my area (Austin, TX) we're on an upswing, so negotiating just loses the house.

Answer 8

I am looking to buy a house at this time. I am looking at the property assessor's office website to find out the history and value of the home to find out what leverage I may have. Have also found several that had back deliquent taxes owed that could have come back to haunt me.

Answer 9

Get a Realtor, it wont cost you anything. Their commision comes out of the selling agent's cut. I shouldn't say anything, maybe a couple hundred bucks, but definatly worth it.