Home Buying in Fishers>Question Details

Pthai, Home Buyer in Fishers, IN

Regardless of Market condition, would it be normal to put in an offer @ 10% less than asking price without being insulting?

Asked by Pthai, Fishers, IN Sat Jul 10, 2010

Houses are selling @ 97% list price.

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7
Dan Chase’s answer
I could be insulted if you offer me $1 under asking price.

I could be delighted if you offered me 50% of asking price.

You never know how someone will react to any offer. So make an offer and see what happens.
1 vote Thank Flag Link Sat Jul 10, 2010
A seller insulted by an offer is immature. A good realtor would advise a client to rely on reason, not emotion. As a buyer I'm no more concerned with a house seller's emotions than I would be with a car dealer's emotions. Unfortunately, car dealers, and a lot of realtors, depend on the buyer feeling embarrassment about hard bargaining. The realtors representing both buyer and seller also benefit from a higher sales price.
0 votes Thank Flag Link Sat Nov 3, 2012
The average sales price in Fishers is about 97 percent of the list price, but you also need to look at other factors, such as the market value of the house, and the sales price of other homes in the neighborhood over the last three months. It also depends on the motivation of the seller (are they moving because they just want a different house? Is the house vacant, and they really need an offer?) Your agent should pull comps for you of the neighborhood. Other things to consider: Are you asking for the sellers to pay any of your closing costs, paying for a home warranty or asking them to include things that aren't included in the sale? This all has to be taken into consideration.I will say that first impressions matter, and if it's a real low-ball offer that clearly is under the market value of the house, you may not get a very good counter offer. Know the facts before submitting an offer, though. Good luck.
0 votes Thank Flag Link Tue Jul 13, 2010
If you have looked at a lot of other homes and feel that this house is overpriced, 10% less than asking is not an insult. There are surely some homes in the area that have sold for 90% of original asking. It all depends on how motivated the seller is. If they are anxious, and are not getting offers, they may be willing to work with yours knowing that it is a negotiation process and you will meet somewhere in the middle.
0 votes Thank Flag Link Sun Jul 11, 2010
Pthai the best advice I can give is to have your Realtor® do a CMA before making your offer to get an idea of the value of the home. List price is a sellers "wish" and may not be connected to reality. If you find that the property is priced under neighborhood value for it's condition it could be construed as an insult. If you need closing cost assistance and are asking for that it brings down the sellers net also. The only time that I have had a client refuse to deal with a buyer after an initial low offer the buyers offer was "insulting" to the seller. We were priced well and the offer came in at about 90% of list, and 6% for closing costs, and quite a bit of personal property. The seller just did not want to deal with someone as preditory as that buyer.
0 votes Thank Flag Link Sun Jul 11, 2010
No. In some markets, it would be insulting; in other markets, you'd be laughed at; in still other markets, you'd be welcomed with open arms.
0 votes Thank Flag Link Sun Jul 11, 2010
It is impossible to know if a seller would be insulted by an offer. I'm not sure of your situation, but often including a personal letter from the buyer can help. Let them know your situation, perhaps this is the most you can afford, perhaps you feel the home is worth less for a particular reason, etc. As a general rule, be kind and positive when submitting an offer. Let them know what you like about the home.
0 votes Thank Flag Link Sat Jul 10, 2010
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