Dear buyer, As Don mentioned, your offer depends on the value of the property and relation to the comps! There is no norm on how much you should offer below the asking price. FYI, base on the MRIS stat, in Montgomery county properties are selling 91.46% of the asking price.
GL!

Sat Mar 22 2008, 20:57

Asking "How much under the asking price should I offer?" is almost like asking "How much under the tax assessment should I offer?" A tax assessment often bears little relationship to the real value of the property. Now, a list price may bear some relationship to the real value...or it may not. The good agents here will talk about pricing a house in line with, and near the lower end of the comps, and if that's done properly then an offer near the list price is appropriate.

However, you cannot assume that an asking price is above, below, or in any way connected to the property's real value. It all depends on the agent and the homeowner. (Now, having said that, I know a few agents who really price for value. If I see one of their listings, I know that it's the best value for blocks around and it probably looks great inside, too. That's how they operate.)

The operative question is: "What should I offer in relation to the comps?" And that depends on whether you like the house, whether you perceive the seller to be "motivated," the price of the house itself and whether you can afford it, and various other factors. So, hypothetically, if you decided on a particular house to offer 5% under the comps, that might be 100% of the asking price...or just 80% of the asking price. But that's how you do it.

And as for the question that sometimes then comes up: "But won't the seller be insulted if I offer 80% of the asking price?" if that's where your number comes in. So what? You offer a number that works for you....that you can afford. One that makes sense in today's marketplace. You shouldn't be worried about the seller's feelings. Let him be insulted by the offers he hasn't received, not by yours. And especially not if your offer is in the ballpark of the comps.

Hope that helps.

Tue Mar 18 2008, 13:27

There is not a magic percentage number to deduct from the sales price. Each case has to be evaluated individually depending on recent sales of similar homes, property condition, available inventory, and seller's motivation.
An experienced real estate, who works for you as a "Buyer Agent" will be able to provide your with all the necessary data to help you decide your offer price. In many cases the price, while is very important, may not be be the only factor to consider. For example you may want closing cost asssitance, a full home inspection. A property that is listed as a short sale or bank owned is not likely to pay for repairs as they are normally sold in 'as-is' condition. Again, you need to look at the whole package. I will be happy to help you if you don't already have a buyer's agent; and if you already have one make sure he/she is experienced and you feel comfortable asking as many questions as you need to ask to feel comfortable moving forward with an offer.

Tue Mar 18 2008, 13:01

The answer to your question is...."it depends" on several factors. You must look at a comparable market anaIysis to determine current fair market value. Once you know that, you must determine whether the property is priced too high, at market, or below market. Only then will you be able to determine a reasonable offer price. Other factors to consider are: location, # of homes available, days on market, and Seller motivation. An experienced Real Estate agent can be very helpful. Good luck.

Have more questions? I can be reached at 301-528-REED (7333).

Rick Reed
Assoc Broker/Owner
Congressional Residential Realty
Rockville, MD
www.teamreed.info

Mon Mar 17 2008, 14:43

A, How to write and offer and how much to write an offer it requires some analysis and risk management for seller and buyer at same time. To make this Win-Win, you have to do your homework (Agent) then write a strong offer. it all depends to the property condition, sellers motivation, location of the property (subdivision), when the property was last purchased, and buyers need. Right now, on avg. properties are selling 5-7% below listed price.


Cheers,

Reza Khodadad
Real Estate Consultant
www.RezaProperties.com

Mon Mar 17 2008, 11:22