Home Buying in 75013>Question Details

Tugena, Home Buyer in Allen, TX

In this market is an initial offer of 10% off the listing price considered an insult?

Asked by Tugena, Allen, TX Tue May 14, 2013

I know in some areas of Allen houses are selling the day they go on the MLS but a couple we've seen have been on the market for 6 weeks and even longer.

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Answers

23
All I have to say is that making an offer of 10% off list on a home that is 20% overpriced is a foolish move!

Contact a local expert that can keep you from making a huge mistake!
1 vote Thank Flag Link Sat Aug 17, 2013
It isn't a bad place to start but homes will sell for market value so be prepared to pay what the home is worth not what you want to pay!
0 votes Thank Flag Link Sat Aug 17, 2013
so how did it work out? what did the seller say when you made your offer? And did you get them to agree?
0 votes Thank Flag Link Sat Aug 17, 2013
That is a good starting point for our area of Florida, but I am not sure what it is in Texas. You need to have a Realtor do a comparative analysis for you to determine what you should offer on the home. Some communities may get a higher percentage of asking price. It depends what other homes are selling for in the area whether or not 10% off is acceptable or not.

Tammy Hayes, Realtor
Re/Max Palm Realty
tammyhayesre@gmail.com
941-276-6185
http://www.tammyhayes.remax-florida.com/
0 votes Thank Flag Link Sat Aug 17, 2013
Hi Tugena,
in every market all percentages are negotiable. If your considering buying a home a good Real Estate Agent will explore all percentages and prices to ensure you are getting the best deal. If you have any additional questions please feel free to contact me at:
Keller Williams Realty
1002 Raintree Circle Suite 100
Allen,TX 75013
Office: 972-747-5100
Mobile: 903-456-7534
Email: cleohayden@kw.com
cehaydenjr@gmail.com
0 votes Thank Flag Link Tue Jul 9, 2013
you need to make a realistic offer if you want a shot at having your offer accepted.

why 10% off??? Do you think the home is overpriced by that amount or are you just trying to buy at a bargain price??

Remember, you're not the only one that may submit an offer on the home.
0 votes Thank Flag Link Sun Jun 23, 2013
An offer is an offer. It's real money. Sometimes houses are on the market because the owners need more money than the house is worth to be able to move into a bigger house or have enough money for retirement or whatever the reason is. Make the offer, who knows what will happen. Make sure to look at comps though so you know you won't offend them.
0 votes Thank Flag Link Sun Jun 23, 2013
No, not ever an insult to submit an Offer but you probably won't get the house! The houses in ALLEN are flying off the shelves in this market. Be prepared to submit an Offer quick if you want the house, and make it a good one! The inventory is LOW, and you are competing with other buyers!
0 votes Thank Flag Link Sun Jun 23, 2013
In my opinion, the best way to look at an offer is through comparable properties that have sold in your area in the last 3-6 months. Your Realtor should be able to assist with that. Each house is a case by case basis and there really aren't rules you can apply across the board. Your Realtor should be able to present a suggested offer price for each property and be able to back that suggested offer up with solid evidence on why you should offer that price. I like to think of it like writing an essay- you can't write a factual paper without factual references! In this case, these references would be market comps, agent advice, and your personal preference towards the property. Talk with your Realtor about what you should offer and work together to make an offer your comfortable with- then offer! Good luck! Hope that helps!
0 votes Thank Flag Link Wed Jun 19, 2013
Don't pay attention to listing price alone. Pay attention to markets comps, what the property is worth to you, and any advice your agent has (or insight they are able to drum up) as far as what would best get your offer accepted. (Keep in mind that properties are also going for over listing price in this upward market).
0 votes Thank Flag Link Sat May 18, 2013
First, hopefully you have chosen an agent who knows the ALLEN market! If not, that agent will do the research into the comparables for you so you will have a good understanding of what is selling in the area and for how much. Look for an agent who SELLS home in ALLEN!!
0 votes Thank Flag Link Sat May 18, 2013
At the price it is offered and the condition it is in if no contracts are pending in this market, it is likely overpriced. This could be due to amenities, appearance, or other factors. List price is nothing more than the highest price a seller thinks he can get - it's not an appraised value.

So, to answer whether it's an insult: consider whether it's a waste of your time to go see a house that is definitely not worth what it's listed for. The potential buyer has already been "insulted" or at least deceived - turn about is fair play. Just forget whether the seller will be offended - at some point he needs to face reality.

Using comparable sales in the area your Realtor can probably come up with a fair offer to make on a house (and that may bear no resemblance to the listed price). If that turns out to be 10% below list, so be it.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Fri May 17, 2013
Work with your agent to make your BEST offer! This is a very competitive market in Allen, and we are seeing multiple offer situations. I am hearing about buyers being really disappointed that they lost a house they really wanted. Make it clear to your agent! We know how to strengthen all the elements of an offer so hopefully our buyers don't go away disappointed. Inventory in Allen is low right now, so good homes are getting snapped up fast! Make a strong offer from the beginning!
0 votes Thank Flag Link Fri May 17, 2013
I believe the answer lies in the comparable sales in the area and whether the property that you are making an offer is reasonably priced. Or can you substantiate the offer that is 10% less than asking price. If it has been on the market for 6 weeks, then the price may be too high to start with. Have your Realtor provide you with market information that supports the offer you want to make. If the market data suggests that a price should be higher then you have to look at other factors of the subject property that would make it less valuable than the comparable properties in the immediate market. For example, if i the house is situated at the foot of a water tower, beside a railroad or under high wires, the property may not be worth as much as other properties. You should price in this discount because you will have to sell it with the same discount. Glad to answer other questions. Feel free to call me anytime.

Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com

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0 votes Thank Flag Link Tue May 14, 2013
In the market we have today, a home under $300,000. that is in a good location and in good and in a great location will sell in days!! It has been my experience that if the home meets the criteria above that anything less than list or better will not get you into that home, especially if there are other bidders on the home. If the home has been on the market for weeks, it is either overpriced, in poor condition or in a less than desirable area. Many home owners that decide to sell think that because the market is moving fast that they can over price their home. This is a huge mistake, the property still has to appraise and the appraisers are looking at the past history of the neighborhood. Don't ask for seller contributions, that will eliminate you if you are in a multiple offer situation. There are some other negotiating skills that an experienced agent like myself can implement in their clients offer that will almost assure being the one that gets to move into that new home. Do not take 10% of the offer unless you are not attached to the outcome!
0 votes Thank Flag Link Tue May 14, 2013
Please submit all offers. Its not good practice to presume you know what is motivating a seller.
As you can see from the answers below there are many factors to consider when a seller considers an offer. It will help to use a licensed real estate agent to represent you in the transaction as their experience and knowledge of the local area can guide you to position your offer in the best light.

How can I help you?

George Gewinner
RE/MAX Town & Country
Allen, TX
214-644-2555 o
214-802-5837 c
Web Reference: http://www.buyDFWnow.com
0 votes Thank Flag Link Tue May 14, 2013
In Allen right now, we are seeing multiple offers. We are seeing multiple offers on homes in good condition, location, and priced right. An experienced agent can help you make your BEST offer. You can always make the offer you are comfortable with, but you may not get the house if it is too low and there are multiple offers.
0 votes Thank Flag Link Tue May 14, 2013
So many factors come into play of submitting the correct offer. Your Realtor should be providing you the guidance. Many properties receive 4 offers

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Tue May 14, 2013
It all depends on the situation, the sellers and their listing agent. Obviously the price and condition of the home and the sellers' motivation play an important role. I would suggest that you discuss with your realtor about your plan to make an offer of 10% off. If you are not working with a realtor then I'd be happy to assist you.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Tue May 14, 2013
Not at all, especially if you are a highly qualified buyer.
0 votes Thank Flag Link Tue May 14, 2013
It always depends on the house.
I think in most cases today if you offer 10% off a house that is priced right, you might not even get a response.

We always look at a number of factors before you bid including sales prices of other homes in the area, marketability of the house you are bidding on, what the seller paid, what they owe, days on market and other factors.

I always present every offer even if it is for $1....often I tell buyers now though, it is not always what the seller will accept, it is what other buyers are willing to pay. Not every home sells the 1st day on the market, but that doesn't mean they are priced wrong.

Price isn't everything....sometimes it depends on so many other factors in the offer....leasebacks, closing costs, closing day, option period, cash or financing, how much financing, lender, title and many other items.
0 votes Thank Flag Link Tue May 14, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
The longer a home has been listed on the market, should give you more wiggle room to negotiate with the seller. The initial list price is higher to allow for seller negotiations, for the most part. There are numerous counter offers until you settle on price anyways, so I persoanlly don't think it would be an issue. Call me if you need help, 817-925-9393. I know a ton of great Realtors as well.
0 votes Thank Flag Link Tue May 14, 2013
I don't consider any offer an insult. It either acceptable or unacceptable. I don't know why agents take it so personal. If I were you I would submit 2 offers one as is where buyer pays all closing cost. And another one closet to asking price including all that you would need done on the house to make it worth that to you.

Regards,

Chris Hutchinson
REALTOR®
The Michael Group
972.809.0607
http://www.chrishutchinsonrealestate.com
0 votes Thank Flag Link Tue May 14, 2013
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