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...
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!
It been a while since I've assisted in the purchase or sale of a home that had all those seemingly increadible opportunites.
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.
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?
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.
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
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.
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
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.
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.
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 Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
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
http://www.lynn911.com 100's of Dallas homes listed for sale or lease
Follow me on Facebook and Twitter
(If my answer is helpful indicate by THUMBS UP or BEST ANSWER. Thank you )
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
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.
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.
Thank you, Berni
Bernadine (Berni) Eberle, RealtorÂ®
Keller Williams Central
Susie Kay, RealtorÂ®
GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
Servicing your real estate need is my priority!
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.