What is your Realtor advising you to do, and have you looked at recent immediate area comps to justify the number you have in mind. Keep in mind that some sellers will find an all cash offer very appealing but in the end whether cash or mortgage the seller still gets paid--with that said-- if this the house for you and know you will be happy there and if you haven't already done so look at those comps.

Anna

I am just going to cut to the chase;) Without understanding the specifics I think 15% under asking for a cash offer is a great place to start the bidding process. You can always raise your offer price if necessary! In this market that is a very reasonable offer. We would love to assist you if you are not already working with an agent. We are the number one agents in the town of Yorktown. Please call us at (914) 275-5988 for a private showing!

Hi, Below is a blog I posted on crafting an offer to purchase..One thing I will add is cash is king in this business, sellers and attorneys love it, especially with the state of lending these days.

There are many factors that go into a purchase offer and the Buyer Client is the ultimate decision maker.

These factors are as follows:

1) Price of similiar properties, normally the Agent will put together a CMA (Comparative Market Analysis) that will accompnay the offer. This way the Seller and Listing Agent see that You have done your homework and understand what comps We used to make Our decision.

2) Property Condition - Is the property in good condition or in need of updates and repairs. Will the buyer have to invest alot of money for the repairs?

3) Length Of Time On The Market - A long period of time on the market may indicate a slow market, there is something inherently wrong with the property, or the property is over priced. Over pricing is usually the number one reason a property will sit.

4) Supply And Demand - The Buyers offer may compete with others. This happens alot in a Sellers market, but as We have seen in Our market lately multiple offers will come if the property is desirable and attractively priced.

5) Sellers Motivation - A Seller that is under duress or pressure to sell may be more receptive than one that wants to wait for the right buyer and price.

6) Terms - This is a very important part of the offer. The terms can make a world of difference, sometimes even more then the dollar amount of the offer. Again, this all goes back to the Sellers motivation. Some terms that make an offer more attractive are all cash, short closing period, no home sale contingency for the buyer, waiving contingencies such as a home inpsection or mortgage (I recommend these stay in), and few or nor Sellers concessions. The simpler the terms the more enticing the offer will be.

Sincerely,
Christopher Pagli
Licensed Associate Broker
Legends Realty Group
914.406.9023

Hi Westchester Gal,
The market value of a home is determined not by what the seller asks, but by what the buyer actually pays. Your offer may be accepted by one seller and not the other based on what that amount will net the seller. You may decide that you really like one home over another, and it may be worth more to you for one reason or another. To make an informed decission, you should work with a Buyer's Agent who will be able to counsel you on the area you are interested in and what other homes are selling for, not what they are listed at. You are in a great position, there are homes available, you have the cash and are offering a deal with no contingencies, the sellers are waiting for you!
It doesn't sound like you are working with a Buyer's Agent yet, they would have given you the information you need to make an informed decission. Feel free to contact me if you need a Realtor.
My best to you and your husband,
Kathleen Cruz
Associate Broker
Coldwell Banker Residential Brokerage-Yorktown
cell#914-552-7559

Hello Westchester Gal - In this extremely slow market we tell our Buyers - Make an Offer! Whether or not a seller will counter or respond to an offer 15% off asking depends upon the seller's motivation, how long it's been on the market, when they bought it and what they paid for it and what they currently owe on it! Keep in mind many owners who have bought their homes at significantly lower prices 10-20yrs ago may have re-mortgaged them for children's education, new cars,vacations... So what they bought the property for is not necessarily a good barometer for what they may be willing to accept. As your Buyer Agents, we can assess all the variables surrounding a property for sale to effectively determine what a seller might sell for. Check out Westchester Listings - YourHouseListingBook.com - Register to search just like an Agent - it's free. Want to talk more 914-406-5291. We are full time Agents and live in Northern Westchester.
Noreen & Wayne
Associate Brokers
Better Homes & Gardens Rand Realty

I would also like to add a note about buying for All Cash. There are numerous Advantages to NOT buying with cash, but rather taking advantage of the historically low interest rates and Tax Advantages that come along with it. Please discuss this in detail with a Certified Public Accountant to learn more.

If you need to speak to one, please let me know and I will be happy to refer you.

Unlike Retail, there is no set "Cash Price" for real estate. See, with real estate, the Seller always gets cash. At least, what ever cash is left over after all the bills and mortgages have been settled.

Also, with real estate, there is no hard and fast way of determining the asking price. Some sellers are very aggressive and put the house up for sale at a very competitive price and another may inflate the value to a number the home could never sell at.

Your best bet is to work with a Buyers Agent that can provide you with statical information for each home you are interested in putting an offer on. This is very much like a Comparative Market Analysis, but for the Buyer and not the seller.

If you are interested in working with a Buyer's Agent, I would be happy to answer more question for you. In the mean time, be sure to visit: http://stlawrenceproperties.listingbook.com

Hi Westchester Gal!

There really is no formula for this. There are so many variables that will determine a selling price. Some of these are tangible, market driven facts or statistics. Some of it is seller expectations and media hype!

Basically, you need to have your Realtor do the leg work and find out what the house SHOULD sell for. Some houses are listed far higher than what the market will bring and some are priced for a quick sale. If the house you are interested in is 20% over priced to begin with, an offer 25-30% lower than asking price might be appropriate.

If a house is priced well, and you REALLY don't want to lose it, an offer of 10% below asking might be appropriate.

So...have a Realtor help you determine what the banks are going to think of the price and go from there!

Walt FitzPatrick
Houlihan Lawrence
Bronxville Brokerage
914-513-9811
wfitzpatrick@houlihanlawrence.com