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.
Licensed Real Estate Agent
1408 White Plains Road
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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.
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.
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Fillmore Real Estate
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.
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.
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.
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.
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.