How much lower than the listing price do most sellers accept?

Question

I just want to get an idea of my chances of getting a home for less than the listing cost. I don't know what most sellers will accept....

Answer 1

That's really going to depend on the seller's motivations for selling and much they HAVE to sell. If you find an investor-owned property to buy, they will usually be more willing to cut their losses because they understand the market better. Some sellers have an unrealistic idea of what their property is worth and have it priced considerably higher than what it's truly worth. Some sellers are relocating or the house is an estate sale and they need to sell as quickly as possible.

Condition of the property and how much work it needs, not only to make necessary repairs (a roof or HVAC maybe), but also how much updating it needs will also affect value. A home built in the 1960's with it's original windows, plumbing and electric, plus avocado green paint and carpet throughout will need alot more than a 1960's house that has periodically been updated over the years and maybe has 10 year old windows and neutral colors inside.

Bottom line, when you're looking for a house, treat it as a business transaction. Don't fall in love with any one house or you may find yourself paying too much. Work with a reputable buyer's agent - not the agent who is listing the home for sale - as a buyer's agent will have YOUR best interest in mind rather than the seller's. And remember that in most states the seller pays the commission to both buyer's agent and seller's agent so don't be afraid that you'll have to pay an agent as a buyer. Find someone who is experienced and knowledgeable to help you - this is a very big decision in your life and I've seen alot of people get in lots of trouble because they tried to do it alone with guidance from a professional.

Good luck to you. I hope you find your dream home!

Answer 2

It really depends on alot of things: the local market conditions, the seller's reason for selling, the list price (was it reasonable, low, or high to begin with?), and the amount of equity the seller has. Also consider your own motivation; is this your dream house that you will kick yourself for losing if someone writes a better offer than yours while you are negotiating? Any good Realtor will be able to show you a printout showing the average list price vs. sale price in your area; that might be the first place to look for a real answer to your question. Armed with information your offer will not be just a "shot in the dark" but an one that you can defend with facts. Lastly, I always say: "No ask-ee, No get-ee". Good luck in your home search!!

Answer 3

It depends (like most things in life).

It depends on who is selling and what their motivation is. Some sellers are moving out of town and one spouse is already gone to the new job and have had their house on the market for 9 months. These people are probably more flexible on price than others.

Some sellers just like to see what their house is 'worth' and will only sell if it they can get full price.

This is a great question for your realtor. Your realtor can also give you the pricing history on the house (whether they've dropped their price already), how long it's been on the market and recent comparable sales in the area to give you an indication of value. They can also tell you the AVERAGE sales price to list price ratio (usually 93-98 percent as answered previously).

Good luck!

Answer 4

You can start making offers at any level that is comfortable for you. I always started 10% lower depending on the area. If the area is hot and the house is already fairly priced, you may have to meet their asking price, but in today's market, I doubt it.

Start lower and keep counter-offering wilth them until you find a comfortable spot. It all depends too on what you are asking for in the deal, i.e. washers, dryers, refrigerators, cash back to cover closing costs. All those things add up. Remember if you want anything from the seller you will have to come pretty close to the mark to get it. Good luck.

Answer 5

1st bid should be around 10% less than listing price. After counter offers, sales usually go around 93-97% of list.
Depends on the property and the market.

Answer 6

Sellers aren't a club. Each one is different. Find a home you like and then determine what you are willing to pay. Worse they can say is no. Also ask for 3% towards your closing costs. http://www.choicefinance.net/

Answer 7

I believe the national average is around 4 - 5%, but that really doesnt matter. What matters is what you're willing to pay for a property. look at each property individually, based on each's own merrit.

good luck