Home Buying in Crown Heights>Question Details

Patrick Momp…, Home Buyer in 11210

Considering it is still a buyers market is it safe to assume the asking price is always negotiable?

Asked by Patrick Mompoint, 11210 Sat Dec 26, 2009

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Nirmala Caraballo’s answer
Dear Patrick,

Of course you will get answers from both sides of the pendulum. Some say everything is negotiable, while others says its not. After viewing the home and discussing with your agent other comparable sales in the area, you should have an better idea as to what the home is actually worth. For example if the home is completely renovated and contains all of todays modern amenities the buyer may not want to negotiate much. If there are multiple offers then the buyers may trigger a bidding war but that is rare but not impossible. I suggest you put an offer that you are comfortable with, if it does not work out move on.

Good luck.

Nirmala Caraballo
Licensed Real Estate Agent
Cruse Realty
1408 White Plains Road
Bronx, NY 10462
Tel.: 646-479-7873
Email: nhcaraballo@yahoo.com
0 votes Thank Flag Link Sun Dec 27, 2009
Hello, prices are usually negotiable 90% of the time. The question is how negotiable is a particular property? If you really like a property you need to have an agent tell you what similar properties go for in the current area for the last six months and current asking prices for those selling now. Then you and our agent can see if the property you want is better, slightly better, or below average compared to those on the market and then make a offer based on that information.

Also you want to consider how long the property has been on the market and the situation of the sellers because the answers can help you decide to put in a lower or higher offer. So just get all he details you can in order for you to make a smart decision.
0 votes Thank Flag Link Wed Mar 6, 2013
Is it a buyers market in your area? In Michigan it is not. Ask your realtor what the market is. So many times buyers do not realize what type of market it is.
0 votes Thank Flag Link Wed Mar 6, 2013
Most of the time it is the case. Occasionally you may see where the ad says the price is firm. Some times it is some times it's not. Also if a house is a short sale and a price has been approved by the bank that is the negotiated price. There certainly are some nuances here and there even with the short sales approved price.
0 votes Thank Flag Link Sun Dec 27, 2009
Dear Patrick Mompoint:

Remember "The Odd Couple" on television? Do you remember what they said about what happens when you assume? It does not matter if it is a buyers market or a sellers market, the only way to determine if a price is negotiable is to present a formal written offer.

The market does not have to much to do with a seller's negotiability, it is simply based on the seller's motivations. Some sellers need a certain price and are willing to wait for it, while others may just need to sell quickly.

If the seller priced their home correctly, they will not have to be negotiable and will sell fast. In the past month I have had several homes sell for the full asking price and even more!

As a buyer going through the motions of viewing homes you will start to get a feel for which homes are overpriced and which ones are priced "right." If the homes meets your needs, you need to determine which place the asking price is at and make your offer accordingly.

If I can be of further assistance, please let me know.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Sun Dec 27, 2009
Keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller “needs” or potential buyers can afford to spend. Market conditions do matter as does the immediacy for a transaction to take place--have your Realtor show you recently closed similar properties in the immediate area, factor in repairs-- then come up with a fair offer.

Anna
0 votes Thank Flag Link Sun Dec 27, 2009
It may or may not be flexible, the question should be is do you like the home,could you see this as your home. You should see the property first and then decide if this property is for you and your family.

Charles D'Alessandro
Fillmore Real Estate
718 253-9600
charles@brooklynrealestatesales.com
0 votes Thank Flag Link Sun Dec 27, 2009
I think most sellers expect some negotiation, especially in the current market. However you have to remember that most sellers have a mortgage to pay off as well as any costs and commissions associated with the sale of their property. I can't stress enough the importance of finding the right buyer's agent to help you determine fair market value so you can make an informed decision when making an offer. A good buyer's agent will be able to furnish you with comparable sold properties and tell you how long the home has already been listed, what the home was originally purchased for and so on.... all important factors in determining a fair offer. Once you have all the facts you need you may still decide to go in lower than market value and sometimes it pays off but keep in mind that a better offer may slide in under the wire and you may lose that perfect home!
0 votes Thank Flag Link Sat Dec 26, 2009
I definitley agree it may not be the norm, but I think it depends on the market, and the amount of foreclosure/short sales that are active for sale.
That is why it is imperative to look at the house itself.
Take a place like La Jolla where the market consists of LARGELY jumbo loans that have not yet fully defaulted. The average list price is 2 Million while the median home price is 800K. obviously there is a lot of room for negotiation. Prices are high, no one is buying and those that can are having trouble qualifying for loans.
Then again, in a place like Clairemont (5 miles away here in San Diego) The average list price and median sales price are both right around 415K. This creates a lot of competition, and the offering on a listing changes drastically. It can be very systematic, but again I think the best advice is to look at comps and bid directly on what else is selling within a mile radius, within the last 90 days.
Web Reference: http://www.sdhomeguy.com
0 votes Thank Flag Link Sat Dec 26, 2009
Patrick - I would say it may be safe to "generally" assume that the asking price is negotiable, but not to "always" assume that.

A home near me just closed for 500,000 - it was listed at 489,000....there are other similar examples....they may be the exceptions, not the rule, but it's always good to know your market before making any assumption.
0 votes Thank Flag Link Sat Dec 26, 2009
It is not safe to assume that anything is always anything.
0 votes Thank Flag Link Sat Dec 26, 2009
Patrick,

I always tell my buyers to bid on the house not on the price. If a home is worth 400K and is listed at 450 (proably a normal seller that hasn't figured out that short sales/foreclosures are actually comps,) there is obviously negotiation room, and most likely not to many offers.
That being said, there ARE times when Foreclosure/REOs are priced extremely low to get a lot of activity. Like the previous example, if a home is worth 400 but is listed at 350K...335 might not get the home. Have your agent show you comps because EVERY situation is different.
Web Reference: http://www.sdhomeguy.com
0 votes Thank Flag Link Sat Dec 26, 2009
Patrick, - it's a pretty safe assumption.

That doesn't mean, of course, that the seller will always agree with you, but in today's market, unless you were in a multiple offer situation, as a buyer, I would never open with a full-price offer.
0 votes Thank Flag Link Sat Dec 26, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Listing price is ALWAYS negotiable. I would no more feel I had to offer what was asked on a house than I would a car.

Think of a listing price as a wish. You can be nice and grant it. Or you can show that it is just a wish and will not happen in reality.

If you come across foreclosures that are very low it may be true that people will bid above that asking price. But that still says the same thing. Price is ALWAYS negotiable.
0 votes Thank Flag Link Sat Dec 26, 2009
Asking Price is always just that...the asking price. As a buyer, you can't always know why someone is selling and how motivated they are. So, a buyer could always make an offer. However, understand that other buyers may be making offers too. The trick is to find the balance between getting a good value and actually getting the house. My experience in this market has been that when a home that is a good value hits the market, it goes fast. And value is also tied to condition, location, utility, etc. as well as price. So, in theory it is always negotiable, that is of course unless the seller doesn't have to negotiate, or doesn't want to. The key is finding a good buyer's agent that knows how to get the right information and guide you accordingly so you get what you want. Hope that helps.
0 votes Thank Flag Link Sat Dec 26, 2009
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