Home Buying in 20744>Question Details

Holly Kelly, Home Buyer in Maryland

What, if any, is the average percent range below the asking price when making a first offer?

Asked by Holly Kelly, Maryland Tue Sep 2, 2008

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Answers

8
Ignore the asking price. Find comps (similar houses that recently sold), then offer a few percent below the comp price (expect the market decline to continue).
1 vote Thank Flag Link Wed Sep 3, 2008
Holly: The percentage will be diffferent for every case depending on these questions: How long has the property been in the market?, how much does the seller owes to the bank? , How much work does the house needs before occupancy?, is this a short sale?, is this a foreclosure? The relationship between your Realtor and the listing agent. . the answers of these questions will give an idea how much to offer below the asking price
1 vote Thank Flag Link Wed Sep 3, 2008
I have to agree with Larry.. this is definitely a case by case decision. There are so many variable to take into consideration when you sit down with your Agent. Have your Agent pull as many comparables as possible so together you can make an educated and FAIR decision. If you really want the property don't play games... another buyer will end up getting the ratified contract, and NOT you.
Good luck!
1 vote Thank Flag Link Tue Sep 2, 2008
Hi, It's best to make an educated offer so when the seller responds you can show them you know what you are talking about. Shooting blindly usually backfires unless a seller is desparate to sell and is confident you are very well qualified. I would pull comps and also try to see those comps in person. The compsa re what a bank appraser is going to use as well, hopefully they will already know that. You also have to decide if the value is there for you, how bad you want the property, and how long you will reside in the property.

Chris
0 votes Thank Flag Link Sat Jun 25, 2011
Have your agent do his or her job and get comps for homes that have closed within the last year, base your offer on those closed comps with room to negotiate up in price... But if you low ball you may risk the chance of the seller not being willing to work with you.

Good Luck
Maggi Quinn
Crossroads Realty
Jackson/Millstone Office
Cell 732-299-1502
0 votes Thank Flag Link Sat Jun 25, 2011
I'm with Ben. List prices don't mean anything. They are usually set with the input from a Realtor, but they're often just wishful thinking on the part of the homeowner. When representing a buyer, I advise them not to offer a lower price just to offer a lower price. Offer what the home is ACTUALLY worth... and document this in the offer with comps, etc. You not only want to offer less, you want them to accept it. You must show the seller evidence that the home is not worth what they're asking for it.
0 votes Thank Flag Link Wed Jun 9, 2010
In a normal market where homes are not upside down in equity, we are not inundated with short sales, and the homes are selling in less than 3 months time, I use a 20% less formula. But - we are not in that kind of market unless you are in some pockets of stronger markets...

In the general market today - look for comps that sold within 3 months of being listed and start with the 20% formula...make sure the comps reflect the same school system, general style home and condition.
Then tweak based on other factors too long to go into here.

Tom Hinz
0 votes Thank Flag Link Wed Jun 2, 2010
Holly that is a case by case question. I usually will do quite a bit of research before advising my clients on the buy side. Case in point I got a contract signed today and we started over 5% below and asked for alot of extras. But, I did my homework and knew that the builder was hungry. He has alot of inventory and has not had any sales lately. He had not sold any at this particular community since March. So have your agent do some digging and try to find out what the circumstances are.

Hope this helps,
0 votes Thank Flag Link Tue Sep 2, 2008
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