Home Buying in Wellington>Question Details

Joyceekeeley, Home Buyer in Tampa, FL

For a ~$300,000 house South FL real estate market, would it be within reason to ask for 5% off and no closing costs if we pay in cash?

Asked by Joyceekeeley, Tampa, FL Thu Mar 8, 2012

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19
Hi Joyce!
Your question sounds reasonable, and at the same time just remember, everything is negotiable, AND every property has it's own "story." Feel free to contact me and I'll be happy to find out the "whole story" and submit your offer at no additional cost to you. If this property doesn't work out for you, I specialize in the Eastern Coast of South Florida and can help you find the perfect property that meets your needs and your budget!
Anna Marie Losito
Velocity Realty Inc
561-662-5400
Email: RealtorAnnaMarie@gmail.com
1 vote Thank Flag Link Wed Jun 6, 2012
Hi Joyce,

WOW I can't believe some of the answers I've read on this blog. Here is some great FREE advice. If you know what cities you are interested in in south Florida go to the top of Trulia and click on Find an Agent for that city. I would read the profiles AND the recommendation letters from their clients. Then call 3 agents and interview them. The top Realtors will be able to answer all your questions and help you find your dream home!
0 votes Thank Flag Link Fri Nov 1, 2013
Hi Joyce,

That sounds at the very least like a great starting point. It really depends on the property, but with a cash purchase there will likely be some wiggle room for you.
Please call me with any questions or requests to help !!
0 votes Thank Flag Link Fri Nov 1, 2013
At this particular time in this particular real estate market, a Boca Raton home asking $300,000 is likely to go for full price and then some. You are not likely to get 5% off plus closing costs.

If you are able to persuade the these Boca Raton home sellers to concede up to 2% off the asking price, it will be a virtual miracle in today's seller's market.

Right now homes in Boca Raton asking $300,000 are at a premium because prices have risen almost 30% since last year at this time.

In addition, cash buyers are flooding the market in the $350,000 and under price range and inventory, though rising slowly, still remains tight. As a result, home sellers in Boca Raton are still in the driver's seat when it comes to negotiation of sales price.

Marc Jablon, The Jablon Team
Re/Max Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes Thank Flag Link Wed Sep 11, 2013
Hi Joyce,

There are so many variables that could weigh into this scenario that any answer would be pure guess work.....

The reality is that as a buyer you can start negotiations anywhere. Where it goes from there will depend on both the buyer and seller's level of motivation.

If you elect to go in low with your offer, be prepared to be greeted with seller adjustments such as countering with the property being sold "AS IS" or the elimination of other offerings such as a home warranty, etc.

Good luck,

Bill
0 votes Thank Flag Link Thu Jun 7, 2012
It is reasonable to ask 5% off and get another $5,000 off the sales price buy using a Buyer's Agent who will offer a Buyer's Agent Credit of up to $5,000 for additional price reduction!

As a Mortgage Broker, I have realtor partners who are on standby to help my buyer referrals in this way. See the reasons why:

http://www.trulia.com/blog/steve_31/2012/05/why_why_would_a_…

Also, if you and prove you can pay cash with showing a letter of deposit, you can get the same deal without investing so much money into DEAD EQUITY and instead taking advantage of all time low rates!

If a borrower was to obtain a rate in the 3% range, after factoring in the tax write off savings, that's an effective cost of money in the 1% range correct?

I would think most could then find another way to invest a quarter million dollars to make over 1% return!

Heck, hard money investors are seeing returns over 9%, some charging up to 13% and Points!

Do the math, or contact me and I'll do the math for you!

http://www.pro-option.com
Steve McRory
Pro Option Mortgage
steve@pro-option.com
Ph: 888 662 4404
0 votes Thank Flag Link Thu Jun 7, 2012
One of the enjoyable aspects of purchasing a home in South Florida is that you can make any offer you think is reasonable. It is up to the seller to respond with a yes, a no, or a counter-offer.

If you are paying cash, or using a mortgage, asking for 5% off is not outlandish. However, closing costs, which are not a negotiable factor, may amount to anywhere from 3-5% of the purchase price.

So if the seller also covers those costs, the amount of concession may rise from 5% to 8% or even 10%. In today's market, depending upon the owner, the condition of the house, the neighborhood, the length of time the house has been on the market, and a variety of other factors, a seller may or may not agree to cover the closing costs in addition to giving you a 5% concession on the price.

So, is it within reason to ask for those items? It may be to you, and it may -- or may not -- be within reason to the seller. But it never hurts to ask. Your South Florida realtor will be happy to do this for you, because negotiation is one of the interesting and, occasionally, exciting aspects of our job.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes Thank Flag Link Wed Jun 6, 2012
Why don't you make your offer price 5% less or $285,000. Closing costs are minimal in cash buying. Or offer $285K with seller paying all closing costs http://www.mypbchomes.com
0 votes Thank Flag Link Sat Apr 14, 2012
Joyce,
It depends on the house. what are similar properties selling for, is it priced with the right range? what are the upgrades. Lots of factors involved. But it all depends on what the seller is willing to accept, and you will only know when you ask.
Good Luck!
Genevieve Ramachandran
0 votes Thank Flag Link Fri Mar 16, 2012
Hi Joyce,

It is really difficult to apply a general concept to buying real estate. It ALWAYS depends on the comparable sales in the neighborhood, how long the home has been on the market, and the pricing approach the seller used to list their home. A seller can list the home above the comps and leave a negotiating window OR they can list the home right at the comps and expect full price. It takes a good buyer's agent to identify which pricing approach the seller has used! We have foreclosures selling well above the list price in Parkland right now so there is also the third option, REO listing agents can list homes under the market to create a multiple offer scenario and a bidding war!
0 votes Thank Flag Link Sun Mar 11, 2012
If you are looking to purchase a home in Wellington in the $300,000 and under range, a final offer of 5% under asking price is not unreasonable. In addition, because you are paying cash, and the seller in Palm Beach County is responsible for choosing and paying the title company, your closing costs will be negligible.

However, you should know that Wellington homes in the under $300,000 range fit into the realm of "best sellers," because the market for homes under $350,000 is where 90% of buyers want to be.

So talk with your Wellington realtor so you can get a better idea of what's happening in the neighborhood in which you're interested. Make an offer that is more than 5% under asking price because the sellers will make a counteroffer, no matter how close to full price you come in.

If their counter-offer gives you less than a 5% discount off the selling price, you have to decide whether the house is worth it to you or not. But if the Wellington home you are looking at gives you everything you have in mind, and if there is not an abundance of other homes in Wellington that will work for you, then bite the bullet and buy the house. You will regret if later on if you're unable to find something that compares to it.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes Thank Flag Link Sat Mar 10, 2012
If that's what you are looking to do- I wouldn't start there! Let the seller tell you
what is possible! You can always go up- be a willing !negotiator. It will seem
less involved to the seller if you ask for a reduction in price that covers your costs.
Make it simple! and with room tto appear reasoable in negotiation .again-llet the
Seller negotiate with you ! Cash Buyers in the 300K range are not usually "trashed"
by serious sellers here!

BOB BRUBAKER HIGHLIGHT REALTY PALM BEACH COUNTY FL. 561-876-6649
Web Reference: http://pbc-realcam.com
0 votes Thank Flag Link Thu Mar 8, 2012
Great Question! There is no "reasonable" amount to offer below the asking price, however, you should always try to negotiate. You should also work with an experienced Real Estate who can look at the comparables in the area in which the home is listed. Most sellers want to get as close to market value as possible. Even if the home is bank owned, or being sold as a short sale, the lender will want to get as close to market value or the appraised value as possible. Taking that into consideration, cash is always an incentive because the seller knows that you can typically close within a shorter period of time than if you had to wait for your financing to be approved. A clean, straight cash deal with no closing costs is always appealing and asking for 5% off the asking price is not unreasonable. Again, you want to make sure the asking price and your offer are close to market value. Hope this helps.

If you have any more questions or need help negotiating a sale, please feel free to contact me directly.

Beth Saifman
Keller William Realty Wellington
561-254-5875
BethSaifman@aol.com
0 votes Thank Flag Link Thu Mar 8, 2012
Joyce,

That totally depends on the house in question and the metrics surrounding that property. Last week I submitted an offer for a client on a property in Palm Beach Gardens for 19% less than list price and fully explained the reasoning and documentation with the offer and it was accepted as submitted very quickly. This week I submitted an offer for 23% off list price on another property for another client and it too was presented with solid reasoning and that offer was also accepted as submitted very quickly.

However, both of those properties are in market segments not as "hot" as the sub $400,000 single family home market and in Wellington that market is very, very strong. Again, so much will depend on the subject home, if it is properly priced for it's condition and features, the urgency of the seller, the comparable sales within the last 90 days and a whole host of other factors. You must have the right documentation to submit an offer on any property so you can properly present that information in a manner that will put your offer in it's best light.

A couple weeks ago I submitted two offers on behalf of a client for single family homes in Wellington both listed in the mid $300,000's. We saw each home the first day it was listed and submitted what I felt were very strong offers for each home. The first seller "countered" us at full price while the other "countered" at a discount of about $7,000 from list price which my client readily accepted. That amounted to about 2% of purchase price and we did not ask for any closing cost assistance. The contract was bilateral two days after the home hit the market and the listing agent had to cancel six showings, two of which were second visits, so you can see how strong the market is. Both of these were traditional sales.

Yesterday I submitted a "highest and best" offer for a client that was 5% above list price on a bank owned property which you will see many in today's market. They had over 10 offers in two days and I really do not think the odds are good for my client to be successful.

So again, much will depend on the particular property you are interested in but if it is in Wellington, is not over-priced and been languishing on the market due to price or condition, you will probably not have much luck but without an address that can be properly researched it is hard to say for sure.

I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Thu Mar 8, 2012
I have seen homes selling in south Florida with large discounts given for a cash buyer. But, it depends upon the property and how it has been priced by the seller's agent. You will need a good negotiator to work out a deal which will include no closing costs. Also, if you look at foreclosures or short sales most times you can get properties below appraised value and must have a agent experienced with these kinds of deals. Please call me if you have any other questions.
0 votes Thank Flag Link Thu Mar 8, 2012
Well, the best answer is "That depends". There are too many factors for there to be a hard and fast rule. It may actually be that you could discount the price even further, depending on what the comparative sales show and depending on how long the property has been on the market, and what condition it's in and where it's located, and if it's a short sale or a foreclosure, etc, etc, etc. And that's why "It Depends". Sit down with an experienced REALTOR® who can pose the right questions and examine the details that will finally determine what price is reasonable to offer and with what terms and conditions for the entire offering. Remember, it's about more than just price.......

Laura Jaffe
Keller Williams
561-252-4426
Laura@JaffeRealtyGroup.com
0 votes Thank Flag Link Thu Mar 8, 2012
Absolutely...what is the asking price? No matter how you look at it they will be netting $285K prior to any other Seller's fee's. Just keep that in mind based on what the asking/offer price is. If you don't negotiate it off the front end, you can ask for it on the back end like this. Hope this helps!

Let me know if you need any assistance...happy to help!!

Kim Jenard
Coldwell Banker
Wellington, FL 33414
561-644-9650 cell
kim@kimjenard.com
0 votes Thank Flag Link Thu Mar 8, 2012
Hi Joyce,

Make your offer for the $ amount you feel is fair. The worst that can happen is a No or a counter offer. It doesn't hurt to try with a lower offer.

Are you working with a REALTOR? What do they say? Are they telling you what the comps are for a similar home in the neighborhood? If you're not working with an agent, please contact me directly and I will be glad to help.

Is the house you want a regular sale, short sale or foreclosure? Depending on the type of sale I would sometimes change my strategy, but the most important thing to have is the comps for the neighborhood.

I look forward to hearing from you.

Nadine Mauro
Highlight Realty
561-414-0864
NadineSellsHouses@gmail.com
http://www.floridahouseseller.com
0 votes Thank Flag Link Thu Mar 8, 2012
We would love to help you with that. I think you can do better then that depending on what is selling in the area. Please call me I would love to help you purchase your Dream Home.
Looking forward to meeting you.

Terri Spector
Keller Williams Realty
772-285-1064
Email: terrpizza@aol.com
0 votes Thank Flag Link Thu Mar 8, 2012
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