Home Buying in Sunset Park>Question Details

Trulia Brook…, Other/Just Looking in Brooklyn, NY

Is there a percentage a seller will mark up the price of a home? For example, if the asking price is $114,000 is an initial offer of $95,000 too low?

Asked by Trulia Brooklyn, Brooklyn, NY Mon Jan 28, 2013

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Good afternoon,

As many years as I've been helping First Time Buyers (23 and counting!!!) my clients have often asked me, "How do I know what the Seller really wants for the house?"

My response has always been: "Make an OFFER!"

When you make an Offer you are opening a dialogue with the Seller of the home (through their Realtor unless you're buying a FSBO). Conversations are a great way to get to the nuts and bolts of a home purchase. Too often Buyers want to ask lots of questions to get "inside information" about the Seller's wants in terms of price. With the internet, Buyers can frequently research what a Seller paid and how much the Seller may owe on their existing mortgage(s). IMHO this is a flawed method for getting to the truth about Price.

Create a dialogue with the Seller by making an Offer. Watch and listen for the Seller's response. Is there no response? Consider increasing your offer slightly. If there is a response to your Offer, what kind of response is it? A counter-offer? A resounding, "NO?" Or, best of all, an Acceptance?

No matter the response, you've opened a conversation. Once the conversation has begun the purchase transaction begins to gain momentum. I know it may not feel that way, but the parties involved, including the Realtors, are thinking "We have a potential deal on the table. What do we have to do to make it work?" Your Offer will soon lead to a serious dialogue and hopefully an acceptance. You won't know unless you make that opening bid; so, make an Offer, create a diaogue with the Seller and Buy Your Home!

See my blog, "Five Steps To Making An Offer" for a sharp negotiating style that focuses on making you the most serious and qualified Buyer a Seller has ever seen.
http://www.tcurranmortgage.com/2010/04/09/five-steps-to-maki…


Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

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0 votes Thank Flag Link Tue Jan 29, 2013
If we wanted to we can do a statistically study and/or analysis to answer this question, but again, that would just be a statistic. In the end each homeowner and home buyer are different and have different motivations. If someone really wants to sell, they will price their home accordingly and it will sell. If someone really wants to buy, they will make their offer accordingly and buy. In the end, if either or both parties are not realistic in their expectations, the sale will not happen.

When looking to buy or sell a home in Brooklyn, each home has to be looked at in a case by case basis. If someone tells me they need to sell their house quickly, I tell them not to inflate the price, you simply ask for what you want or what you feel it is worth. In the end, if it does not happen, you know you are aiming too high. On the other hand if a buyer tells me they need to purchase quickly, I would recommend that they offer the full asking price or close to it.

I will say that the homes that are good deals sell for very close to asking price or sometimes even above the asking price even in today's market. That my two cents worth!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Jan 28, 2013
In Brooklyn specifically, I've recently identified several properties that sold for MORE than their latest list price. Not just one or two, either. So the premise of your question is not always true by any means.

Low ball offers must be taken to the seller, by NY state law, unless the seller has specifically prohibited the agent from bringing such offers.

A smart seller keeps the door open even as the offer, however low, is politely declined.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
New York, NY
212 688 1000x146
0 votes Thank Flag Link Mon Jan 28, 2013
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