Home Buying in Colts Neck>Question Details

Mary, Home Buyer in New York, NY

My husbad and I are new to house hunting and looking in Colts Nech. If we are looking at houses in the 1M price range, what would be a typical offer

Asked by Mary, New York, NY Tue Feb 16, 2010

range? I was thinking 15-20% less than asking price? Thanks!

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15
Sarah Pomphrey, e-PRO’s answer
There is no typical offer....I would base your offer on the comparable home comps which would be discussed with your realtor. There are too many variables to know what an acceptable offer is without a specific home in mind. Good luck!
1 vote Thank Flag Link Thu Feb 6, 2014
Mary,

Statistics from the Monmouth/Ocean Multiple Listing Service show your annual from 06/2009 - 5/2010
% Sold / List Price is 91.98%

20% below asking price, often the Sellers will not counter .

Best regards,
Carol Donatelli,CRS
Certified Residential Specialist
http://twitter.com/coltsneckhomes
1 vote Thank Flag Link Wed Jun 16, 2010
Hi Mary,

There is no set percentage to take off a home, million dollar home or two hundred thousand dollar home.

The key is to do your due diligence and understand the market and area. Included in your due diligence is finding an agent that understands these properties and has sold a few. Although the percentage part of my statement here is accross the board. Luxury property agents tend to have a better understanding of the area and market in this price range.

As an agent that has listed, marketed and sold numerous high value properties, I can help you with your search in this price range.

Colts Neck is a stones throw from my office, email or call and I can send what is available and we can discuss the area, pricing and comps.

John Sacktig
Broker / Manager
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

JSacktig@orangekeyrealty.com
1 vote Thank Flag Link Wed Feb 17, 2010
Hi Mary,

In general, not always, but in general, 15-20% off in Colt's Neck is not going to fly at all. Your offer will usually not even receive a counter. Even in the case of an overpriced home, the seller usually will not believe your offer is fair or even remotely realistic. You can play the game of visiting 50 houses and making 80% offers on all of them and hoping for a miracle, but in reality it is probably not going to happen.

I'm sure 20 agents on Trulia will love to work with you hoping that after you lose 10 homes you will get real on the 11th one. But I have to be honest with you. If you asked me to represent you and told me that you were categorically going to offer 15-20% below asking price, I would not work with you. It's nothing personal, it is just that your mindset will doom you to failure in most cases in this market.

Good luck!

-Marc
1 vote Thank Flag Link Tue Feb 16, 2010
Hi Mary,

The previous agents have hit this answer dead on. Anyone who gives you a number or percentage is not doing you justice. You will have the following three situations:
1- Listings that are aggressively priced listed at 1 million, these could sell at or above asking price.
2- Listings that are priced average.
3- Listings that are overpriced.

The sellers motivation will also kick in to the offer price, but overall you really need to know your comps. If you want to work with an experienced agent, please feel free to contact me. I love the Colts Neck area and I wish you the best of luck in your search.

William Troy
1 vote Thank Flag Link Tue Feb 16, 2010
If you don't have an agent, consider the services--you need to be aware of recently closed similar properties in the immediate area, after reviewing the data you can determine a fair offer. Keep in mind there are no set standards as to percentages less--some properties may be priced on target, or less, while others may be priced a bit above market--again, an agent will best guide you.
1 vote Thank Flag Link Tue Feb 16, 2010
Calculate the average price per square foot of the homes that have sold in the last 6 months and are within one mile of the home u want to buy. That should give you a good idea of the value of the home.
If you don't feel that you want to pay that average value then put in a 90% offer. Want to be more in market then you'll have to go 95-98% of the asking price.

How solid is your loan approval? Are you doing at least 20% down? Can you show a credit approval letter from a solid bank like Wells Fargo who has already reviewed your credit report and income documentation?
0 votes Thank Flag Link Thu Aug 14, 2014
You have received a variety of helpful advice. However, I publish a monthly report just in Colts Neck that addresses that specific question (sale price vs. list price) as well as many other pertinent averages and metrics. Take a look if you'd like. Pass it along if you find it helpful...
http://www.djtenhoeve.com/category/colts-neck/
0 votes Thank Flag Link Thu Aug 14, 2014
Thanks for this report. btw - what is the average time on the market for listings in the Colts Neck area?
Flag Thu Aug 14, 2014
If the house is priced appropriately and is very desirable, they are selling very quickly and pretty close to asking. if it has been sitting a long time or is over-priced an offer of 15% less might be appropriate.
0 votes Thank Flag Link Mon Jun 23, 2014
Mary, there is not much I can add to this as it has been answered quite well the key is finding a Broker / Agent who knows the market in that area at Veltri we have a division that handles nothing but the "luxury" home market if you have yet to find an agent you are comfortable with feel free to contact me
0 votes Thank Flag Link Fri Jun 18, 2010
Mary, the other agents' responses address many of the pertinent issues concerning pricing a home realistically and what a buyer can expect to pay below the asking price. Condensing all these responses into a single catch-all phrase would not do justice to all the complexities involved in pricing and purchasing a home for fair market value. Your best bet: find an agent who is familiar with the area, who provides forthright answers to your questions, and is willing to show you the raw data involved in determining a home's value. It is all too easy to shift the suggested price (from both sides of the transaction) either up or down depending on what homes and how many "comparable" homes are included in the analysis. An agent who will divulge the inner workings of these "comparisons" and then be able to factor in factors beyond one's control--such as the personal situation of the sellers, etc.--will help you determine a fair market value and how to go about achieving paying less--not more.
0 votes Thank Flag Link Wed Jun 16, 2010
Hi Mary, Have you found a home yet in Colts Neck?
This area is hot....
http://wwwafullhouseinspectionco.blogspot.com/2010_05_01_arc…

Contact me if you have any questions, comments or concerns about any homes you have previewed.
Peter W. Bennett, Owner
Residential & Commercial Inspections
Infrared Thermal Imaging Services
http://www.AFullHouseInspection.com
530 Prospect Avenue Little Silver, NJ 07739
Office 732-758-9887 Cell 732-245-9817
NJ Home Inspector Lic#GI371
NJ DEP Radon MET11140
Certified Infrared Level One Thermographer No.7406
Certified ASHI Member #205748
Certified Member of INACHI
0 votes Thank Flag Link Wed Jun 9, 2010
Hi Mary

If you look at the trends on Trulia for Colts Neck the prices are up slightly this year from last showing signs of stabilization in the market. Now I don't think the market is ready to shoot up but stabilization gives homeowners a sense of security that alleviates panic selling. If you look at the comps for the house that you would like to make an offer on then try to compare apples to apples, for eg, block, bedrooms , square footage, condition of the home etc., you will get a better handle on how to make the right offer and what is the right price for the home. Colts Neck is a beautiful area with many beautiful homes and you really don't see many foreclosures. Colts Neck also has many wall st professionals and they are doing much better this year than last year. That being said I think homeowners in the area are not jumping ship they are pricing correctly when they are motivated. But that does not mean there are no good deals left. We are still in an uncertain economy that leaves opportunities for the savvy homebuyer in today's market.

Hope that helps you. I have colts neck homes on my website through MLS search if you like to take a look
http://www.beautifulshorehomes.com. Call me if you have any questions I would be happy to answer them.

Best regards,
Val Gabela
0 votes Thank Flag Link Wed Feb 17, 2010
Hi Mary, this question is asked frequently - having a % to apply as a rule of thumb may cause you to misinterpret value and miss good opportunities. Fact is this, across communities, homes generally sell between 0 and 5% of their asking price when it hits its strike price. Smart agents advise their sellers to price correctly right out of the gate, and smart sellers listen to them. Those homes sell fast, and for more than homes that are overpriced an limp their way down to their strike price.

Just today in gathering some info for a buyer I'm working with in Basking Ridge, I noticed several new listings in the $700 - $1,000K price range that sold very fast, within days of listing. Were these homes underpriced - no way. And the buyers of these homes rightly recognized a good value and jumped on them. The outcome a fair market deal for both seller and buyer - and those are the deals that make it to the closing table.

So back to your search, let's say that the home you are looking at for $1,000K is priced very well then the 10-20% strategy will cause you to miss the opportunity. On the flip side, if the home is overpriced at $1,000K then the 10-20% discount may not be enough.

So what you need is the service of an excellent agent who understands and can apply the analytics, knows her/his inventory cold and can put her/his knowledge and negotiating power to work for you.

Good luck finding that agent - you've come to a great place to begin that search. If your home hunting shifts to Somerset, Morris and/or Union counties, please contact me.

Best,
Jeanne Feennick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Feb 17, 2010
There is no "typical offer range." It really depends on closed comparables. Some houses sell close to asking price when they are priced right for the market. Others will sell for less. Agents base offers on comparable properties closed prices.
However, a sellers' motivation will also play a part on what price a home sells for, and one can certainly make an arguement for the "days on market" stat playing a part as well.
Get yourself a good local agent who can help you not only find a house, but negotiate a price for you and provide you with all the amunition you'll need to get the best price.
(If you would like an averages stat on list to sales price in town, reach out to me through Trulia or my website and I'll send it your way.)
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Tue Feb 16, 2010
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