Home Buying in Saint John>Question Details

Ise Rod, Both Buyer and Seller in Chicago, IL

Is there a percentage or formula for how much a buyer can discount off of a seller's home's listing price?

Asked by Ise Rod, Chicago, IL Sun Mar 22, 2009

I'm assuming the more expensive the home, the more you can knock off in your offer to buy, but just curious what a realistic approach to take for homes in the $250 -$350 range in Saint John, In?

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x’s answer
I would suggest working with a professional realtor and let him/her show you how to come up with an inteligent offer. You can get concessions and some money shaved off the list price if you work with a realtor that knows how to come up with the right data to support the offer. If you would like to work with that type of agent, feel free to contact me and I would be happy to help.
0 votes Thank Flag Link Fri Jun 10, 2011
These answers are both really good answers. If you are working with an agent, before placing an offer on a house view other homes in the area that are similar to the one you are looking at for comparison. Also, the condition of the home and the amount of updating the home may have or that has been completed also come into consideration. Also have your agent do a radius search of all active and sold homes in the area. Agents can only comp in the subdivision or with in a quarter mile of the home for the most accurate comps. Also, it is the most recent “solds” that will give the most accurate comps as well. Remember that a home will have to be appraised by an appraiser if you are going to be financing the home. Also, keep in mind that here in Northwest Indiana; sellers have been hit with the market, but not as bad as the nation has. Also, sellers that are newer to the market have adjusted to the market conditions. If the home has been on the market a while then check to see if the seller has reduced already. Plus, homes can sit in this market for 100+ days, that is not an indication that it is over priced or anything is wrong with them, just a sign of the times. Working with a REALTOR you connect with will really help you when buying a home and determining what a good offer would be on the home you are interested in. Happy Hunting and I hope you find your bargain.
Web Reference: http://www.GinaBombin.com
0 votes Thank Flag Link Mon Mar 23, 2009
No not really, but if you are looking for concessions, you are not going to get much if you beat them up on price. 6% is the most you can get anymore with FHA, and that cannot be towards down payment. It can go towards pre-paids (insurance and taxes) and other closing costs.

You can offer whatever you want, and the agent has to do write it up, but you want to be careful not to insult the seller. How would you like it, if you sweated and toiled over your home for years and someone walks in and offers you 50% off of what it is worth.

Dave Woodson
The Indiana FHA Expert
0 votes Thank Flag Link Mon Mar 23, 2009
Right here on Trulia, you can look at that area, by town, zip code, map. Then see asking prices as well as recent sold prices. This gives you something of an idea of current prices. You'll want to offer less than this ...

I often do sort by square feet after getting a list, and look for a home with much larger square footage for the money in the same area.

Recent sold prices give you the best indication of where your offer should be for a home. Other things play into it (condition of home, major upgrades like kitchen/bath). If the seller is an estate sale that can really work for you. If the seller is distressed that helps too.
0 votes Thank Flag Link Sun Mar 22, 2009
I wish it were that simple. Short answer, no. Why? Because every seller and agent (if marketed for sale through a REALTOR), has a different dynamic. There is a statistic that IF a home is properly priced, it fetch a certain percentage of the list price.

Listing price is determined by gathering hard data of comparable properties in that same community within the last 90 days (in today's softer market). When you look at a property for sale, ask your own buyer's agent to tell you the comps for that community (price per sq. ft.), then multiply by the sq. ft. Not all sellers price the home to sell, so you need access to your own hard data as a buyer.
0 votes Thank Flag Link Sun Mar 22, 2009
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