We would like to make an offer on a home with a list price of $368,900. The home is located in the suburbs of Athens, GA where the market is slow, especially in this price range. We of course don't want to insult them with a low offer but of course want to get the best possible price. I'm not sure how long the home has been on the market but the owners have already vacated the property in the last week and relocated due to a job transfer.
Also, if we used the seller's agent as our buyer's agent would he have more flexibility with the price since he will be earning both buyer and seller commission? For instance, wouldn't he find it more beneficial to take 5% commission, lowering the price or us and giving the seller more money rather than taking 3.5% for representing the seller?
2007-07-04 05:13:24 · 9 answers · asked by Cosmetic Counter 1 in Business & Finance ➔ Renting & Real Estate
Ok, then what would a low offer be?
2007-07-04 05:22:04 · update #1
The seller's agent is obliged eithically to look out for the interest of the seller. It would most likely be a conflict of interest for him or her to act as your buyer's agent.
If the market is slow, and the seller has already moved, you could probably offer 10% under the asking price. Depends on what comparable houses in the area have sold for in the last year or so - if the house is overpriced based on that, you could offer even lower. The seller can counter-offer, and very possibly will.
2007-07-04 05:35:07 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If it is a slow market and the sellers are motivated to sell (leaving the area), it's worth offering a low amount. You have to be prepared to lose the house if someone comes along with a better offer. If you have time to buy, it's always worth starting lower and figuring out the seller's motives.
Also, it may be worth finding out when the owners purchased the house and how long ago they purchased it. If it was a while ago, they probably have equity and it's worth offering a price that still gives them money back. For instance, if they purchased the house for $250k 10 years ago, it doesn't hurt to offer them $300 if they didn't put anything new into the house. If they bought it a year or two ago and purchased it at $350k, they may not accept anything less than that.
My advice, do your research on the owners and then make an offer based on that and your own motivation.
2007-07-04 06:03:40 · answer #2 · answered by David B 1 · 1⤊ 0⤋
As I tell everyone who asks what to offer here, we cannot give you a proper answer. We do not know the market conditions in the area you are looking. (by the way where is it?)
For all we know the home is already priced 25k under market for a quick sale. I would suggest you do not use the listing agent, and hire a buyers agent to negotiate price for you. They will be able to do comps, and tell you where to offer. You have to remember the listing agent, by law is working for the seller, he will be trying to get the highest price. Don't worry about the commissions, just get representation to help you in the largest purchase of your life.
I see it is in Athens GA, sorry, i missed that.
2007-07-04 05:57:46 · answer #3 · answered by frankie b 5 · 0⤊ 1⤋
DavidB gave the best answer.
However, personally I would not offer more than $305,000 but I have no qualms about walking away from any property as I know that sellers still over price even in this market.
2007-07-04 20:23:52 · answer #4 · answered by Nancy 4 · 0⤊ 0⤋
Offer about 10% less, or $331000. In a slow market this will be considered a reasonable offer. You really shouldn't offer less if you're serious about buying because you're right, it will insult the seller to some extent, and it's important to maintain a good relationship with them. Things will go easier thoughout the sale process if you do.
2007-07-04 05:24:24 · answer #5 · answered by John 5 · 1⤊ 1⤋
For that kind of money, I would buy a yacht.......and sail off into the sunset........sorry.....I'm not a very materialistic person and could never live in a neighbor hood that tells me what color to paint my house. Good Luck, I just like my freedom way to much:-)
I wasn't trying to insult you in any way. I would say make an offer of 325,000 and see what the counter with.
2007-07-04 05:27:03 · answer #6 · answered by Cheryl 6 · 0⤊ 0⤋
Whats wrong with a low offer, the worst they can do is say no or come back with a counter offer.
2007-07-04 05:19:10 · answer #7 · answered by takeashot30 4 · 0⤊ 0⤋
We have our home for sale,personally,I'd be happy with any offer and If I could take it I would! If it was to low...I'd counter offer,to a price that would work for me!
2007-07-04 05:41:58 · answer #8 · answered by 2Bad4U 3 · 0⤊ 0⤋
Have your Realtor find out what they paid for the property.
If you offer less than they paid, they will take it as an insult.
Terry S.
2007-07-07 14:52:05 · answer #9 · answered by Terry S 5 · 0⤊ 0⤋