Home Buying in Rego Park>Question Details

Blind Buyer, Home Buyer in Rego Park, Queens, NY

Do you guys think 10% off is a good bargain with full cash payment?

Asked by Blind Buyer, Rego Park, Queens, NY Wed Sep 1, 2010

I am currently negotiating the price on a 1-bed Coop in Queens and want to ask for a 10% off with all cash payment. The Coop is listed for around $250K. The seller is a very smart investor, who buys poor condition Coops and renovate them for resale. Do you guys think full cash payment would give me stronger bargain power and get my 10% off or even more?

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As a sidebar to resurrecting this two-year-old question, CBRs may well be able to claim that they get better deals for their clients, but ABRs, as Realtors®, are obliged to follow Article 1-4 of the Realtor® Code of Ethics, which states:

REALTORS®, when seeking to become a buyer/tenant representative, shall not mislead buyers or tenants as to savings or other benefits that might be realized through use of the REALTOR®’s services.
0 votes Thank Flag Link Fri Aug 24, 2012
Actually Mack, all Realtors are obliged to follow all of the articles of the code of ethics
Flag Thu Aug 30, 2012
For all home buyers out there: you can get a better deal when you have a buyer agent (or ABR=accredited buyer representative or CBR=certified buyer representative) on your side. In most cases it doesn't cost you anything but saves you lots (time, money, aggravation)!
0 votes Thank Flag Link Fri Aug 24, 2012
Cash is always King & will undoubtedly strengthen your bargaining power. You have nothing to loose by putting in an offer. If it is declined, you can always counter offer.
0 votes Thank Flag Link Thu Aug 16, 2012
Do you have an agent and what is he/she suggesting--In order to determine a fair offer, you need to be aware of recently sold similar units in the immediate area--review the data and make a determination as to fair--it doesn't matter if paying cash or with a mortgage--in addition, before paying cash, do consult with your tax professional and see what is most beneficial to you--cash or mortgage--
0 votes Thank Flag Link Thu Sep 2, 2010
NO! It doesn't matter if you are paying cash or financing as long as your credit is good and your down payment is strong. You're talking about NY, not Florida or California. As far as how much to pay, what are the comps? What have similar units sold for? Is it a popular coop? Are the financials good for the coop? Bottom line, if units in this coop are selling for 98% of asking price, I wouldn't expect to get 10% off. You might make a better deal then average, but you could loose the unit if you low ball. I don't sell in NYC, my market is Westchester & Putnam County real estate. NYC is really a unique market.
Web Reference: http://www.nyhomeseller.com
0 votes Thank Flag Link Thu Sep 2, 2010
If an investor purchased the unit, then much depends on what he/she paid and put into it and still make a profit. Do you have a buyer's agent working for you on this transaction or are you going through the listing agent? If you're using the listing agent, that agent works for the seller and not you. A seller's agent's job is to get the most out of you.

Ralph Windschuh
Certified Buyer Representative
Senior Real Estate Specialist
Associate Broker
Century 21 Princeton Properties
In The Top 2% of Century 21 Agents Nationwide!
0 votes Thank Flag Link Thu Sep 2, 2010
Blind Buyer

Since you are all cash it maybe prudent for you to buy at Auction.
You will likely be getting it at about 50% off.

I believe 10% is too less for All Cash.

However, you need to get a grasp of the whole picture, such as
1.) what are the comprables
2.) how many are likely to foreclose
3.) how many are behind in their mortgages
4.) what is the inventory supply

Good luck.
0 votes Thank Flag Link Wed Sep 1, 2010
Dear Blind Buyer,

I cannot in good faith advise you if this is a good or bad bargain because I would need to do a CMA on the listing and recent sales / listings. Before you make an offer you should have all of the facts on the property you want purchase. It is possible that the unit was purchased dirt cheap and then renovates and even with the renovation the seller could be asking for 20 - 30% above what the property is worth.

If you hire an agent to represent you (it does not cost you anything). If you decide to proceed on your own, please do your due diligence before your put your offer in. You do not want to purchase a property that is completely over inflated and becomes difficult for you to resell.

Good luck.

Please do not hesitate to contact me, should you have any additional questions. Good luck on your home search.

Nirmala Caraballo
Real Estate Agent
Cruse Realty
Tel.: 646-479-7873
E-mail: nhcaraballo@yahoo.com
0 votes Thank Flag Link Wed Sep 1, 2010
In my personal and professional opinion i agree that the full cash payment gives you strong bargaining power because of the economy being what it is, the tighter lending rules, only one third of qualified buyers buying and so many people not qualifying because of the lack of jobs everywhere, he is also up against another 3 million foreclosures estimated in 2010, etc etc.
I wouldn't mind betting this seller has had this property on the market for some time. Also, please consider whether or not this property is an over priced turkey in the first place. I suggest you use a Realtor in your area to help you make the offer and negotiate this sale. Have the Realtor do a CMA for you before making the offer. If you need help with this, i know good agents in the area that will help you with this, and you the buyer don't pay the commission. A Realtor will know how long this property has been on the market and the properties history, and if it is over priced or not.
0 votes Thank Flag Link Wed Sep 1, 2010
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