Home Buying in 76021>Question Details

Ashley, Home Buyer in 76021

Is it still a buyers market? How much below asking price would be considerd insulting to the seller?

Asked by Ashley, 76021 Mon Jul 2, 2012

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Ashley’s answer
Im looking in Bedford TX. I really fell in love with a home that the seller listed about 15,000.00 above what it's worth. After zero offers in 4 weeks she lowers the price 5,000. We made a offer for 10,000 less then the list price of 170,000. Our offer was 160,000. The seller said they don't have to move so they are waiting to see what other offers come in, and that they don't have to take the first one that comes along. So I offered 165,000. Still they aren't budging!! Im in love with the house and I'm not trying to make them "give it away" or even get a excellent deal. I just can't afford to pay 10,000 more than the house is worth.
0 votes Thank Flag Link Sat Jul 7, 2012
I can completely understand your frustration. Ask your agent to contact the sellers agent to see where in the heck their motivation is. At 5k below their asking price I'm not sure what they are thinking. Now, keep in mind what exactly are you asking as far as closing costs. 10k above what the estate is worth are you basing this off of assessed tax value? I ask because assessed tax value should never be used as current market value. If you are currently looking for representation let me know I would gladly assist you. If presented right any mountain can be climbed.

Keller Williams Realty
3xUS Army Vet/ Real Estate Consultant
Joseph Fernandez
cell:817-975-7258
off: 817-635-1157
website: http://www.blissful-estates.com
blog: blissfulestates84.blogspot.com
Flag Thu Dec 6, 2012
I recommend to all my buyers treat your offer as a final and best offer. If you love an estate enough to place an offer why risk the chance of losing it. Unless the house is obviously over priced or on market for a long time I try to keep my clients at asking price especially if they are requesting seller to pay buyers closing cost. If you are paying your own closing cost and expenses by all means gives an offer 3-5% below asking price, if not I think your bargaining days are over. Now, this is not always the case and there are deals to be had however despite what you have heard overall I would not consider many areas in the dfw area a "Buyers market" Yes, interest rates are extremely low and foreclosures and short sales are abundant however if you have an estate priced right you can easily expect multiple offers in a short period of time. Last time I checked we are currently 37% below in inventory since feb 2011. You have alot of competition out there. With the assistance of a good agent you should not have a problem finding what you seek.

Keller Williams Realty
3xUS Army Vet/ Real Estate Consultant
Joseph Fernandez
cell:817-975-7258
off: 817-635-1157
website: http://www.blissful-estates.com
1 vote Thank Flag Link Sun Feb 3, 2013
Competition and the limited listing has really driven the prices up in some areas.
Flag Thu Feb 14, 2013
I'd love to help you. Feel free to contact me through my Trulia profile.
0 votes Thank Flag Link Fri Aug 8, 2014
Current mortgage conditions are among the best ever. From a financing standpoint it is most definitely a buyers market. With rates as low as they are the cost of financing has allowed buyers to get more house for the money.
0 votes Thank Flag Link Sun Feb 3, 2013
Seller's market for sure, now!
Flag Thu Feb 14, 2013
I see your point of view and agree, Yes! It is the best time for a buyer to take advantage of the low rates and for FHA candidates a perfect time to buy prior to PMI bumping back up to stay with the life of the loan. On a real estate stand point in most market centers it is considered a Sellers market, this is due to having less than a 2-3 month inventory in the local community.
Flag Wed Feb 13, 2013
Definitely a seller's market now. You will see a nice property go on the market and have 3 offers in a matter or weeks or even days.
0 votes Thank Flag Link Thu Dec 6, 2012
Great response, I'm still surprised on how often I run into a buyer wanting to place an offer for 80 something% of its sales price. It's a terrific time for buyers to take advantage of the low rates however you are correct it has certainly become a SELLERS market in many areas.
Flag Wed Feb 13, 2013
Real Estate is funny.... it is hard to generalize for an entire market since some pockets of homes and some neighborhoods do better than others.

In general, it is a sellers market in the Phoenix Metro area. The supply for good homes is low and the demand is high which is putting pressure on prices.

Remember too, an asking price is just that, and seller can ask any price they want.

It is important to see what has sold in the neighborhood in the past 3 months and base your offer off of those figures.

Ashley, I guess a good question to ask is what market are you buying in?

John Forsyth HomeSmart Elite Group.
j4syth@cox.net
602-625-4675
0 votes Thank Flag Link Sat Jul 7, 2012
Hopefully you're tearing it up over in Arizona. My mother recently relocated outside of Vegas and I've been telling her for years to get into real estate.
Flag Wed Feb 13, 2013
More and more it's slowly becoming a seller's market but price is still king. It's really hard to answer your question directly as I don't know what the home is actually worth. If I was acting on your behalf as your Realtor and I would advise you on what comparable homes have sold for.

I had a client who was always wanting to come in $10 to $15k below market value. After a couple negotiations that fell through I decided to not work with the client any longer because he was not being realistic. Sure we all want a great deal but people are not giving their homes away.

Here is a good question that maybe you cannot answer. If the owner listed the home at what you want to offer them would the home sell right away with multiple offers? How does your offer compare to other similar homes that have sold or are even under contract?

The fact is if the seller is over priced then maybe they can't go lower because of what they owe. When you submit a low offer like you are asking you really want to also include 3-5 comparable homes that were used to base the value of the offer. That way you are doing everything you can not to insult the seller but show them the true value of their home.

If you are just trying to low ball an offer in hopes of getting a steal you are most likely wasting your time and everybody else's. Use the market and support your offer with comps. If you want to come in lower than the comps that is fine but just submitting an unsupported low offer will just create ill will between you and the seller.

Hope this helps.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Sat Jul 7, 2012
I recommend to all my buyers treat your offer as a final and best offer. If you love an estate enough to place an offer why risk the chance of losing it. Unless the house is obviously over priced or on market for a long time I try to keep my clients at asking price especially if they are requesting seller to pay buyers closing cost. If you are paying your own closing cost and expenses by all means gives an offer 3-5% below asking price, if not I think your bargaining days are over. Now, this is not always the case and there are deals to be had however despite what you have heard overall I would not consider many areas in the dfw area a "Buyers market" Yes, interest rates are extremely low and foreclosures and short sales are abundant however if you have an estate priced right you can easily expect multiple offers in a short period of time. Last time I checked we are currently 37% below in inventory since feb 2011. You have alot of competition out there. With the assistance of a good agent you should not have a problem finding what you seek.

Keller Williams Realty
3xUS Army Vet/ Real Estate Consultant
Joseph Fernandez
cell:817-975-7258
off: 817-635-1157
website: http://www.blissful-estates.com
0 votes Thank Flag Link Mon Jul 2, 2012
This totally depends on your area, what does your realtor advise?

In general this is not a question of 'how much below asking price is insulting'? There are WAY too many variables to consider. Is the home reasonably priced. Is it over priced? How long has it been on the market?

In our area, homes that are priced correctly are selling fast, and many with multiple offers. Work with a good buyers agent who knows that area and the market well, he/she will be able to advise you with each offer you make.
0 votes Thank Flag Link Mon Jul 2, 2012
Great response, I'm a firm believe instead of setting out and making a deal, to go out and find a deal. With the proper negiotating skills it could be a realistic and rewarding purchase
Flag Wed Feb 13, 2013
With only about 3 months of inventory currently in Euless, this tells us it is a seller's market.

It's not just about making low offers. You want to make an offer that will work.
Sometimes low ones can work, but they can often backfire as well.

What happens if they get 3 offers. The house is priced at $100.000k and will sell for $95,000. You offer $50,000 and the other two offer $95,000 and $90,000. Will they respond to you or just the two higher offers, even if in your mind you would pay $95,000?

or what happens if you are the only offer at $50,000, but you'll pay $95,000, but you make them so mad they won't respond at any price even if you go back and offer more. It does happen.

What I think you have to do is look at each circumstance and see where low offers make sense and where they don't. This is something I do with each buyer, and with sellers as well who get low offers. You have to think about what your strategy is and where you want to go with it, what you want the outcome to be, and how you want the seller to respond. Each case is different.

I'd be happy to sit down with you if you don't already have a buyers agent and walk you through the process.

Bruce Lynn
Keller Williams Realty
214-675-6992
0 votes Thank Flag Link Mon Jul 2, 2012
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0 votes Thank Flag Link Mon Jul 2, 2012
I find sellers get insulted with more than $10k below asking. Inventory is low in many areas of Bedford.

Feel free to call/email for a second opinion on a particular home.

Thank you,

Scott Killian
Scott Real Estate, Inc.
http://www.SaveWithScott.com
Scott@SaveWithScott.com
Phone: 817-703-1165
0 votes Thank Flag Link Mon Jul 2, 2012
What works for me is I pull the recently solds for the past 3 months in the area to get a greater understanding of what percentage an estate typically sells for based off of its sales price v. closed priced. When I submitt and offer I include these comps. to better justify the difference. Typically I try not to go lower than 96% of the value total unless I believe it wont appraise and or the property is over priced.
Flag Wed Feb 13, 2013
In most markets it is no longer a buyers market has the amount of homes for sale has sharply declined and the amount of buyers has increased. You cannot base offers on asking price as homes priced to sell often sell for mor ethan asking. A good buyer broker can easily guide you in your market.
0 votes Thank Flag Link Mon Jul 2, 2012
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