Home Buying in 75075>Question Details

Frankie, Home Buyer in Plano, TX

Can " home buying" be like "car buying"?

Asked by Frankie, Plano, TX Mon Jun 24, 2013

For instance, if a house is $100 a sq foot and your budget is $85 a square foot, can you ask the seller ahead of time if they would be open to the idea of reducing the price to that much prior to setting up a showing?

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BEST ANSWER
Hi Frankie,

There is a part of your question that everyone has missed... it is the phrase:

"can you ask the seller ahead of time if they would be open to the idea of reducing the price to that much prior to setting up a showing?"

The answer to this question is a solid NO!!!
No seller will even discuss price until he has a contract in his hands... SO No you cannot ask the seller before A SHOWING if he is willing to consider a lower offer... 15% or even 3% lower...

If you need help call me or shoot me an email...

Thanks,
Don
2 votes Thank Flag Link Mon Jun 24, 2013
Thank you, that is the part of the process I was asking about. You "da man".
Thanks
Flag Mon Jun 24, 2013
Hey...frankie....I did it!
I walked into the Honda dealership and puchased a brand spanking new Pilot. They even gave me $9,000 for a Highlander in need of a paint job, with 136,000 miles and five years of deferred maintainence. The deal was possible because of dealer received incentive to clear the 2013 inventory. AND the dealership was going to PAY me a whopping $1,000 to finance the car with no payments due for 3 months! The Pilot still has the 'new car' smell!
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It been a while since I've assisted in the purchase or sale of a home that had all those seemingly increadible opportunites.
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When you are aware that your local real estate market needs to rid itself of last years model, that is when you should pitch your 15% off. Make sure you push drag or tow in a trade-in. And yes, make sure you get that $1,000 for financing. Let's make home buying like buying a car. The buyer will never know how, when or how thoroughly they are getting hosed.
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And yes, there are short sales. There are foreclosures. You should make your pitch for one of those.
Then come back and tell us your SUCCESS story. How did that trade in work? OK?
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Frankie, there are always those who beleive it benefical to them to circumvent the process in place to PROTECT them. They buy at auctions, they enter lease/optons, they hold their breath waiting out a short sale, they attempt hourly arrangements, rebaters, discounters and isn't that the spirit behind FSBOing....only to find out it just didn't quite work out the way they thought.
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But that is what is so great about real estate. You have choices. Will you be willing to hold yourself totally accountble for the outcome or will you be looking for others to blame for your poor choice?

Best of success to you,

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ
1 vote Thank Flag Link Fri Jun 28, 2013
You think the Seller has an extra 15% profit that you can take away?
The problem is; you don't know what that $100 per square foot represents:
The Seller may have priced it over Market Value, or, they might have Listed it under Market Value to attract multiple offers.
If your Budget is truly $85/sqft, (although this is silly since there are houses that are 1400 sqft and there are houses 2300 sqft,); then you can go through the available houses, offering $85 per square foot, until someone says Yes!
You need help.
1 vote Thank Flag Link Mon Jun 24, 2013
It was just the easiest way I could form my example to see if you could make an offer on a house which exceeded your budget prior to seeing it. stay in the CA part of QA
Flag Mon Jun 24, 2013
Yuck! Not sure why I got an "icky" feeling reading that question but based upon my own "car-buying" experiences and of knowing a lot of people in the auto-industry, I sure HOPE buyers don't feel this way. One thing that is different in our industry is that when you hire a Realtor to work specifically for you in selling your home or helping you buy one...they are representing you and working specifically "for" you (ie: hired to negotiate with the other party and protect your best interests). You don't have this when buying a car. They (car salesmen, finance, aftermarket) are there to sell TO you.

I recently bought a mercedes on Ebay. In that sense, I "was" thinking of how some buyers feel when they are walking into a transaction and don't know much about the experience and what to expect. It was definitely a new experience for me and went in with many doubts. However, I came out feeling empowered and did learn a lot. My point is...as long as you do your research, interview a few Realtors, find one you feel comfortable with and feel that you will enjoy working with, you are well on your way. A good Realtor will be there for any questions that you have as well as guide you through each step of the transaction process.

-Amy S. Arey, Realtor
Halo Group Realty, LLC
214.901.1341-Cell
http://www.Aarey.HaloAgent.com
http://www.MckinneyRealEstateInfo.com
AmyAreyRealtor@Gmail.com
0 votes Thank Flag Link Mon Jul 14, 2014
***I just read the rest of your question in the smaller font. In this sellers market, "most" of the time...the price listed is already competitive. Sure, you can always ask, but it's not generally practiced this way. I would not advise doing this on a home in this market as there are so many full and over-full price offers and multiple offers at that floating around. Buyers who are doing this right now typically learn after putting their valuable time into submitting lower offers after the 1st or 2nd time.
Flag Mon Jul 14, 2014
For sellers, seeing something in writing (an offer) is what counts, so no matter what your budget is or how bad you want a home, the very best thing to do is submit a serious and reasonable offer; this will start turning the wheels of the negotiation process.
0 votes Thank Flag Link Mon Jul 8, 2013
Buying a car and a home is so different and just by saying or comparing them as equals shows your inexperience in real estate. You should pick 1 Realtor to work with only and get advise from them.
0 votes Thank Flag Link Sun Jun 30, 2013
Let's do a quick situation analysis.

Plano is in or close to the Dallas market.

Texas virtually skated through the recession.

Energy is on fire and Texas is one of the huge energy states.

Does that sound like an area where real estate is slow?

What am I driving at? The typical seller knows the local market is strong. If you go into a car dealership, ask the sales manager for the hottest selling wheels on the floor, and can he discount the price, what do you think his reply will be? (Usually, he just chuckles, shakes his head and wanders off.)

If the seller is testing the high side of the market, you might begin the negotiation by tendering an offer at the price you believe it should be. But 15 percent off the seller's price might not even get consideration. You first have to look at factors like how long the home has been on the market as well as a look at comps and how those stack up against the home you are interested in.

If a seller has priced a home significantly over what agents and buyers are finding, it is likely it will linger on the market. There are people who insist on getting their price because they were upside down. It is not a good approach.

I'm willing to bet there are not a lot of these in Texas. As prices keep rising, this particular seller will vanish.

Good hunting.
0 votes Thank Flag Link Fri Jun 28, 2013
I don't think the two are the same in almost any regards.

You can bargain in some cases, but the average discount is probably now 2% in Plano.
That's average...but ever deal is different and we help you look at that when you are ready to bid.

What I see is at 15% discount you will be buying ugly. The ugliest houses are usually the ones with the biggest discounts. Take a sharp house, that looks great, with great landscaping, and priced right and you may have to pay over list to get it due to multiple bidders.

Sometimes it is not what the seller will take, but what your competition is willing to pay. I expect most sellers can negotiate some, but you may get bid out by other buyers.

I'd be surprised if we see any homes in 75075 that have sold for 15% off the list price in the past six months. If you want to come in and discuss, we can look at the stats together. I just say take each deal separately....every one is different.
0 votes Thank Flag Link Fri Jun 28, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Frankie,
When a seller lists their home for sale in the MLS, they are advertising the amount that they will take for the home. They have made an "offer" to all buyers at a specific price. If you want to purchase the home for that price - you would be accepting their "offer".

If you don't want to pay the price they are asking, you can make a lower "offer" but there is no guarantee that the seller will accept it (regardless if you have seen the home or not).

However - it is usually not appropriate to negotiate with a seller prior to seeing their home unless you are buying it sight unseen. It wouldn't be a very good protection for you - as there are upfront costs associated with going under contract (some of them you don't get back if you don't buy the home).

If you are still interested in purchasing a home, and need assistance, I would recommend that you hire a Realtor to represent you. There is usually no cost to you to hire an agent - and if the home is listed for sale, the seller has an agent representing them (so you will want to be represented).
Melissa

Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
214-418-0180
Melissa.Hailey@ColdwellBanker.com

http://www.linkedin.com/in/melissahaileyrealtor
http://twitter.com/melissahailey
http://activerain.com/blogs/mlshailey
0 votes Thank Flag Link Mon Jun 24, 2013
Home purchasing OR shopping for a car OR anything else done that way.

If you are considering a $15 sq ft. reduction = $15,000 off 1,000 sq ft property probably be declined.

Home sales are close to record highs best to invest the time complete a full search.

Contact my office today where I can show you many amazing homes work with your family specifications.
_________________________________________
Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

Follow me on Facebook and Twitter
http://www.facebook.com/lynn911dallas
https://twitter.com/Lynn911

(If my answer is helpful indicate by THUMBS UP or BEST ANSWER. Thank you )
0 votes Thank Flag Link Mon Jun 24, 2013
Hi Frankie,

It really all depends on how long the house has been on the market and what the seller's motivation is to sell their house. If it was just listed, than I honestly don't think the seller would consider the reduction. On the other hand, let's say the house has been on the market for 6 months or more. I think the seller would maybe consider it.

Make it a Great Day!

Tamika A. Goree
Broker | Owner
The DFW Property Shop
Cell: 972.697.1178
Fax: 972.665.7148
Email: tamika.goree21@gmail.com
0 votes Thank Flag Link Mon Jun 24, 2013
- It was just the easiest way I could form my example to see if you could make an offer on a house which exceeded your budget prior to seeing it. stay in the CA part of QA

Why would a seller negotiate against themselves? They've already priced it at, say, $250,000. If they would be happy with $225,000, maybe they'd list at $225,000 and then have THE ENTIRE MARKET know.
0 votes Thank Flag Link Mon Jun 24, 2013
New Rule.... Anytime you hear a Realtor say the phrase " its a hot market right now"... be weary of them.. They are in it for themselves and not your best interest. Who cares if its a "hot market right now" Are there no short sales left? Are there no foreclosures taking place? Has everyone magically found a job and gotten their mortgage caught up? All the answers posted to my question which had this "hot sellers market" phrase disappointed me.
0 votes Thank Flag Link Mon Jun 24, 2013
Also most agent and home owners won't entertain anything that is not written up in a formal offer. So asking before you ever see the home would be very tricky but can be done.
Flag Mon Jun 24, 2013
The "hot market phrase" is just meaning that sellers have the advantage in the market. Most sellers right now are selling their homes in matter of days for either full asking price or over asking price. Inventory is the lowest it has been in 13 years. You can always ask if they would consider it but I bet most of them would not consider at all bringing down their price that much. However, every situation is different. Maybe the home owner has been on the market for a very long time and is willing to come down in price. You never really know until you ask more questions. Now as for short sales the home owner has to first approve your asking price and then the lender has to approve your asking price which can take months to get approval. So if you have the time to wait it could work out for you. Most foreclosure you bid on, the bank will review your offer and they accept whoever is the highest and best bidder.
Flag Mon Jun 24, 2013
Hi Frankie,

Unfortunately buying a car is a lot more simple since you know what model and year build and mileage way ahead prior to seeing it. You can look up on blue book on its value and can pretty much know how much its worth.

In a home, the process is much more complicated. There can be a lot of issues on the home. Its not just something to protect the seller and it protect yourself too. What if the home has major issues and you are talking about prices already prior to seeing it. And at the end of the day, you wont want it due to the condition of the property. So there is really no reason to be negotiating on price prior to see it.

I hope this helps when I am thinking from your prospective. Please let me know if you need a hard working realtor to help you finding a home in the area.

Thanks

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Mon Jun 24, 2013
Frankie, we are in a hot seller's market right now.There are several determining factors when placing an offer on a home, not just price per SF. It is wise to work with a Realtor who can guide you through the steps of your purchase.

Thank you, Berni
Bernadine (Berni) Eberle, Realtor®
Keller Williams Central
214-282-2945
email: bernadine@kw.com
website: http://www.bernadineeberle.com
0 votes Thank Flag Link Mon Jun 24, 2013
It's the sellers market now so you'll have a hard time getting a home with your technique especially if the home is already priced at market. You'll probably be able to do that on a home that's fixer upper and has been on the market for a long time.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net
http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Mon Jun 24, 2013
Hi Frankie,

No, "home buying" cannot be like "car buying" We are in a hot, sellers market right now.
It would benefit you greatly to select a Licenced Texas Realtor to answer your questions & guide you through one of the most important decisions you make in life.

Good luck!
0 votes Thank Flag Link Mon Jun 24, 2013
You can always ask if they will reduce that much. However, in this market I doubt any one would consider it. Houses have appraisals saying what they are worth but cars do not. Also cars a depreciating goods as soon as you drive the car you have lost value. Homes however appreciating goods they usually increase in value over time also if your improve the home or maintain the home with same standards in the area you should make money or come out even on your home when you go to resell it. When you buy a home your agent will look at the comps in that area and make sure the home is priced fairly if not then you can ask for them to come down in price. If you need any help with finding a home please contact me at 972-762-4240, email: bethanysimmons@ebby.com, and check out my facebook page at BethanySimmonsEbbyHalliday and "Like" the page. Please let me know if you have any other questions about buying a home. :-)
0 votes Thank Flag Link Mon Jun 24, 2013
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