How much below asking price can I purchase a house for?

Question

One agent in Atlanta told me I could get a house in the current market 15% below asking price. Statistics online show that houses are selling 17.5% below asking price. Are these realistic figures in today's market?

Answer 1

Since the "current market" or today's market is based upon what has sold in the past 3 months, the only true way to see that home's value is by comparing compatibles. Every town and every city is not experiencing a decline. So, you need to compare homes of similar style, beds, baths, square footage, location, etc., and use only what has sold in the past 3 months to base your asking price on. (Seeking the help of a Realtor, would help you!)
Now, that being said, I can probably help clarify the agent from Atlanta's point....If a home has been on the market for one year, at its original asking price, that home has now decreased in value 15 percent below asking price. So, for example, in Atlanta, if a home was listed on 12/1/06 for $300k and has had no price reductions, that homes value is now worth $255k, if that home is still on the market as of 12/1/07. Here in certain areas of New Hampshire we are experiencing a 12 percent market loss. So, to answer your question, those are realistic figures in certain areas of the county where a home has remained on the market for one year with its original asking price. Hope I helped!

Answer 2

The interesting thing about real-estate is that each local market is different from the next. For example, homes in Atlanta might actually sell for 20% below the listing price, on average; whereas homes in New York City may actually sell ABOVE the asking price (bidding wars).

The general rule is 5-10% below asking price, but since the real estate bubble is bursting, I could certainly see you buying a home for 10-20% below listing price if the sellers are desperate.

Answer 3

It depends on the current asking price. If the asking price is already 10-15% below market value then you want to offer @ or near the price. If your market is depressed then absolutely offer much less or if the seller is desperate. I bought a condo in NY about 10% below market @ the asking price. I see properties listed @ 10-15% below market in my area.

Answer 4

It depends on a number of things, such as whether the list price is inflated or already at rock bottom, how motivated the seller is, and the market activity in the neighborhood.

Where I live and work (I'm a REALTOR in the Jacksonville, FL area) some parts of the metro area are selling pretty well, while others are dead.

Answer 5

The market varies by area, and more specifically by neighborhood. There are pockets of my local market that can command very close to asking price, and are getting it. But other areas cannot. And this is in southern Oregon. Not exactly a hotbed of RE markets.

Know your market and offer accordingly.

Answer 6

that's that this sort of soft concern. it extremely is human nature to compliment to get the terrific deal yet once you think of the abode interior of reason priced the vendor would have already taken the present common advertising time into attention while pricing their abode and in case you circulate in with a low ball supply you threat insulting them and not even getting a counter supply lower back. you certainly need the centers of an experienced Realtor working on your terrific pastimes right here. If the home is indexed by using a Realtor that Realtor represents the vendor. It shouldn't value you something to have yet another Realtor characterize your pastimes and could shop you a kit besides as countless grief.

Answer 7

Make an offer. The seller will either consider you scum and ignore you, or he will make a counter-offer. You can accept the counter offer, or negotiate from there.