You are not trying to insult the seller, correct? If you feel the home is worth closer to 13% below the asking price, then by all means, make an offer. What might help your case though, is to have your agent prepare a CMA or a brief comp report validating your position. It would be hard for the seller to argue with stats.
On the other hand, if you are in a position where this is all you can afford, then make that clear to the seller and try to pull on the heartstrings.
Paragon Real Estate Group DRE 01844627
Who knows if it's "insulting"? One seller might be delighted to get an offer, any offer, even if it's 13% below the listing price. Another might consider any offer even a penny under the listing price insulting? You're not a mindreader. You're not the Amazing Kreskin. You don't know. So don't worry about trying to figure that out.
Who cares? Even if it IS insulting, so what? These sellers aren't going to be your life-long friends. You're not trying to establish some long-term partnership with them. It's not like in-laws, who you'll have to deal with for years. You're making them an offer. They can accept it, reject it, counter it, or ignore it. They'll be doing that based on the numbers. Please get rid of this "insulting" hang-up.
One other tip: You might be overpaying even if you offer 13% than the listing price. If it's had periodic reductions and has been listed for 350 days, we know that it's overpriced today. We just don't know how much overpriced it is. Have your Realtor perform a CMA to determine an approximate value of the property. Then pay no more than that. Probably offer less. Your Realtor can provide you with a number of strategies.
So your first step is to figure out what it's worth, in order to set a ceiling on any offers you might make. Then offer what it's worth to you. And absolutely don't worry about insulting the sellers.
Hope that helps.
In any event, if you do not make an offer you will not buy the property.
To a serious Seller NO offer should be insulting. I've had some of the lowest offers I've received be negotiated to the highest and best. In general we don't deal in percentages here (unlike some areas of the country) but going in under asking price should have some basis in market value. Ask your agent to do a full market analysis. Is the house priced realistically? Base your offer on market value +\- what the house is worth to you.
The real answer to question is; That depends on what the comps say, but generally no. If you have good comps to go by, and the hosue is still overpriced, then fire away, but if you look at the comps and the house is already very aggressively priced, you'll want to make sure you are the only player before entering into a lengthy round of back & forths...If the most recent reduction just took place, and the house already seems like a good deal, you don't want to kill time and let buyer number 2 show up.
True market value is what a buyer is willing to pay for a home in the market today.
Dottie Cordwell, Broker
CDPE, GREEN, SFR, e-Pro, ABR
Advance Realty Professionals, Inc.
Congratulations on making a decision of buying a home. For your question, it is not insulting to make an offer less than the listing price. It is all part of the negotiation. Never feel uncomfortable on any decisions that you make. Especially on your potential first home.
Your agent should pull all comparables in the area to show you what has been selling in the neighborhood for the last 3 months. That will give you a better understand of the market value. If you need help, let me know. The other factor is the condition of the property. Does it need work or improvements? I hope this helps.
Chi C Yan
Then it all depends on the Sellers also. I have seen situations where the Seller would not negotiate because the price was so low. If that happens - submit a better offer. Some Sellers feel as if you want them to GIVE their house away.
Then there are times when lowering the price that much would require them to do a short sale - which folks will avoid if possible because then the Seller gets nothing out of the deal (no money) and the bank also comes up short.
One thing you can do is have your Realtor talk with the Seller's Realtor to find out if they are flexible and if they may accept that type of offer or if you'd need to make your percentage less than 13%.
One last thing I'd like to add. Also have your Realtor ask the Seller's Realtor whether an offer has already come in (which often happens when the price drops a lot). Or if another Realtor has notified the Seller's Realtor of their intent to provide an offer - You would probably want to make your offer more appealing if you really want the house.
I wish you success in getting the home you desire.
Your Agent should provide you with all the information about the history of the house, what have other homes sold for in that area and if there is anything wrong with the house since it has been on the market for a while, you get the idea.....once you have all the information in front of you can figure out if your proposal would be an insult.
do you know what the neighborhood around it is going for ? Have youj pulled public record see what assessment is? Sounds like you need a good Buyer Broker to help you sort these things out. But I wouldn't consider it an insult unless it is already listed below market value and then you take the chance of losing a great house already at a great price...otherwise, no I wouldn't think it would be an insult. A house is only worth what a buyer is willing to pay and a seller is willing to sell!
Long and foster