Home Buying in Myrtle Beach>Question Details

janemartin20…, Home Buyer in Myrtle Beach, SC

If I want to make a cash offer, how much more can be deducted from the first offer? 20%?

Asked by janemartin2013, Myrtle Beach, SC Wed Jul 31, 2013

Help the community by answering this question:

Answers

9
You should know the value of each property before you step foot into it. If itis 20% overpriced I wouldnt bother even looking at it until its reduces. Knowing the approx. value of each property you preview will lessen your chances of losing out. If you have to go back afterwards and pull comps to determine an offering price, a more informed buyer will be a step ahead.
1 vote Thank Flag Link Thu Aug 1, 2013
janemartin2013,
Have your agent find recent compairable sold homes prices to see if any offer you may make is within that range. Also ask your agent about competition for the property you want to make an offer on. Sometimes you are better offering your highest and best offer to secure a property rather than chaising the lowest price which may not get you the property.
0 votes Thank Flag Link Thu Aug 1, 2013
You can offer whatever you want but you should always ask your agent for two comps; one excluding foreclosures; the other including foreclosures. That would give you a better idea on what a reasonable bid for the same house has already been accepted. You are the buyer and you are the one that makes the market price. The seller either accepts what the market is offering or keeps on paying their mortgage. I know a home in my area that I had listed very high because that was the price the owners wanted to recover. I suggested a much lower price but they wouldn't budge off their asking price. That house, after two, maybe even three years, I forgot, is now at the price I suggested. If it sells within the next nonth, do the arithmatic. 24 or 36 times their mortgage payment subtracted from the closing price and that's the real SOLD price.
0 votes Thank Flag Link Thu Aug 1, 2013
Jane, my advice would be to attempt to assume the role of everyone involved. Imagine you are the seller. While you can't know all aspects, with the assistance of a buyers agent you can have insight. Is a cash offer really going to be that attractive versus an offer that includes waiting a couple of extra weeks to get "my price".? What your agent can help you with would be looking for other dominate motivators that can push "your price". Such as, how is the financing market for this type of property? How long are lenders taking to close a deal? How many other buyers are looking at this property? What is the history or likely future for this propriety or neighborhood? This is just a few thoughts. Please click my picture and give me a call. Lets find your home at your price.
0 votes Thank Flag Link Thu Aug 1, 2013
Jane,
If your agent has pulled the comps your offer it will show the trend for that home in that particular area. Any seller would be foolish to take 20% less then the current comps. Even Banks holding foreclosures in this market (The Grand Strand) are closing with in the comp range. Starting 20% below may cause you to miss opportunities. You may want to look at the turn over of the properties as well as pricing & revamp your strategy. I recently was presented an offer that was significantly lower then the asking price & there were multiple offers. The seller flat out refused to negotiate the low offer, it was actually 20% under asking. Something to think about. Good luck.
Cordially,
Christine House
Century 21 Broadhurst & Associates
609-339-0916 Mobile
843-215-6831 Alt.
0 votes Thank Flag Link Wed Jul 31, 2013
Every property and situation for buyer as well as seller motivation is different in numerous ways. There isn't a flat number that can be just deducted from every list price. My suggestion is to have a agent represent your interest and evaluate the property to place a offer relevant to the property in your interest.

I'd be glad to help you and appreciate the opportunity. Remember, as mentioned in previous comment with rare exceptions the seller usually pays the broker commissions. That said its really in your interest to be represented, it will make your process so much smoother and better paired with a broker that fits your needs. So regardless of myself or anyone else, find a broker that you like and stick with them, evaluate properties you like and work together on offers one at a time.\

Good luck to you in your journey... Nathan
0 votes Thank Flag Link Wed Jul 31, 2013
My first thought was.. are you sure the seller is in distress? If so, they may be willing to accept a lower offer with no contingencies. If the seller is not in distress, why should they consider a low ball offer?

You really need a buyer's agent to help guide you through the transaction at this point if you don't already have one. They can help you resolve questions like these and protect your interest in the property.

I do not work the Myrtle Beach area, but I know several great agents that do. Please let me know if I can refer you to any of them of answer any other questions you might have.

Each day it's becoming more of a seller's market than a buyer's market. That dictates a great deal in transactions right now.
0 votes Thank Flag Link Wed Jul 31, 2013
You should first get a market analysis on the property in which you are interested before making any offer. Cash is always good but owners of a non-distressed property will not likely accept an offer which is 20% below market value unless they are desperate to sell the property and banks always do appraisals for foreclosures and short sale properties so they definitely are interested in market value.

I would be glad to assist you if you would like me to help you with a market analysis. The market for houses here is changing and prices are starting to move up so it is important to know current market value. Many factors must be considered-sometimes you can benefit from someone who is eager to move and cash closings are quicker, so certainly in that case, cash buyers have an advantage. Please contact me at 843-504-6888 or llsmeltz@msn.com if you would like to discuss further.

Liz Smeltz, Realtor CDPE
Real Living At The Beach
Murrells Inlet, SC
0 votes Thank Flag Link Wed Jul 31, 2013
using a buyer's agent costs you nothing. I would speak with a reputable Broker in your area to help you make a informed offer. Yes, "cash is king" however, money is money and depending on the local market you may miss out of a property by offering too low...
0 votes Thank Flag Link Wed Jul 31, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer