Home Buying in Miami Lakes>Question Details

Stephan, Home Buyer in San Francisco, CA

How do I know if I should offer more or less than the listing price in Miami Lakes?

Asked by Stephan, San Francisco, CA Mon Apr 23, 2007

Is there a difference if I'm looking for a single family home versus a condo, or some other type of property?

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6
you have to work with a realtor in the area, for more information call 954-297-5634
0 votes Thank Flag Link Fri Feb 25, 2011
Miami lakes is a very tricky market and is an area that is declining just submitted an offer in ML for a customer 150k below asking price and offer was accepted just goes to show ,don't be afraid to offer low.
0 votes Thank Flag Link Sun Jun 8, 2008
You need to know what the comps are before you make a decision. Sales data will reveal everything to you. Have your agent prepare a comparative market analysis for you.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Sun Jun 8, 2008
Listing price has nothing to do with what you should offer. It really doesn't matter.

What matters is what the property is worth. What's its value? You can determine that from the comps. A Realtor can supply you comps.

Once you know what it's worth, that's your ceiling price. You pay no more than that. So, for negotiating purposes, your probably offer less. How much less?

Well, if the comps come back at $400,000, and the property's listed at $375,000, you may want to come in near full price. Note: I said "near." Offer full price, without negotiating, and many sellers will wonder if they've done the right thing. ("Gee, I should have asked for more.") If the property's listed at $400,000, pretty much the same answer: come in somewhat below the listing price.

And if the property's listed at $425,000, you come in somewhat below the comp number of $400,000. How much below? There are a couple of possible strategies. On the one hand, you can make a real solid, "best and final" one time offer of, say, $395,000. Or you can recognize that in the United States, many people tend to "split the difference" in an extended negotiation. (And not just money: Look at the apportionment of Democratic delegates from Florida and Michigan...half a delegate. Now that's "splitting the difference"!) So if you're prepared to negotiate, and recognize that the owner might simply reject your initial offer, if he's priced at $425,000, you offer $375,000 and you'll probably end up around $400,000. Or start a bit lower, and maybe end up below $400,000.

Final point about such negotiations. Don't offer a nice round number like $395,000. Make it odd: $394, 805. When the listing agent asks your agent where that number came from, the answer is: "That's what my client calculated the value to be."

You also asked whether there's a difference if you're looking for a single family home, condo, or some other type of property. No. There's no difference.

Hope that helps.
0 votes Thank Flag Link Sun Jun 8, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Actually the disconnect between supply and demand for homes in Dade County is quite large, and a well aducated seller knows this. In this market, one should never offer more. As to how much less than the listing price to offer depends on many factors such as how long the property has been on the market, and how realistic is the asking price to begin with. Adittionally, your strength as a buyer will also play a part in how good a deal you'll ultimately get. In a market invironment where a large portion of the homes that are presently under contract do not make it to the closing table, a strong candidate can always command a lower price. Ask your agent how he/she will pitch your offer to the seller. Here's some more info on my methology and properties...

http://profile.myspace.com/index.cfm?fuseaction=user.viewpro…
0 votes Thank Flag Link Sun Jun 8, 2008
For the first time in eight years, the overall U.S. housing market is experiencing a rare balance between home-buyer demand and home-seller supply an offer should be made on the property merits and fair comparables.
0 votes Thank Flag Link Mon Apr 23, 2007
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