Home Buying in 11741>Question Details

Dan, Home Buyer in Queens, NY

What is the average percentage Below asking that your first offer is in this market?

Asked by Dan, Queens, NY Fri Jun 6, 2008

When making an offer in this market in Suffolk County, what is the average people are offering when making their first offer? Is it 10% below asking, 20% below asking? What is the average selling price in regards to the asking price?

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Hi Dan. it depends on the seller's motivation, if he NEEDS to sell, he will negotiate until it is sold. If the seller WANTS to sell but does not have to sell, then you will face an uphill battle. Just offer that most you can and provide as much documentation (credit report, w2's, bank statement) to make your offer stronger.

Good Luck

Henry
917-497-0729

http://www.QueensLIRealtor.com
0 votes Thank Flag Link Fri Jun 6, 2008
20% below asking. We use to see houses sell within 6% of asking and now it is down to about 11%. John Holbrook - Realtor Amelia Island http://www.nassaumls.net
1 vote Thank Flag Link Wed Jul 29, 2009
I have long awaited this question on Trulia, since I have been asked the same question for over 23+ years in the industry. The answers so far indicate alot of truth and truly the need for guidance. The fact has to be that you will see different opinions and directions for the same questions based upon the competency and experience of the people you ask. Simply stated, it is more difficult to get the right agent, the right answer without a direct emphasis on market data, including the proven proficiency of the agent you may choose.

Most buyers I have deal with have chosen the property they wanted for emotional reasons, once they were comfortable with the market data I supported for them as their Buyer's Agent. A proven professional will always, with passion, strut their stuff and show you the black and white of it all. Loving the home that you will choose to live in for atleast the next 6 to 10 years cannot and should not be measured in a few dollars here and there. It should be supported by facts that it is a good enough deal for your consideration!
1 vote Thank Flag Link Fri Jun 6, 2008
You don't really want to go by asking price.
Asking price is not nessicarily determined by the market, but rather what the seller feels they *should* get for the property, or what they want to get out of it.

You have to first do a bit of market research, and figure out if the asking price is even realistic.
The asking price may be way high, in which case a bigger percentage off the asking price is more then reasonable. THe price might also be low - in which case sticking closer to the list price is going to be a better option.
1 vote Thank Flag Link Fri Jun 6, 2008
That question has to be based on the current list price and the current market conditions. A house can be priced at the top of the range when it first comes onto the market. During the listing period that home can have a number of price reductions to the list price and actually have a current listing price at market value. Market value is created from the average selling price of recent comparable homes. In this case the current list price may not require a starting offer 20% below ask. If you are working with a buyers agent they will be able to advise of the current average selling price and compare that information to the current list price with input on a proper starting offer.
0 votes Thank Flag Link Thu Jan 21, 2010
If you're making an offer to a listing agent or sub-agent, he/she is working for the sellers behalf, not yours; so they will be be trying to get the highest price. If you are making an offer with the assistance of a buyers agent, your best interests are what matter and he/she will guide you by showing the listing price and sold price for the neighborhood and make suggestions on initial offering and will negotiate the best price for you. If you need assistance, call me on my cell 631.252.0631, I am a buyers agent.
0 votes Thank Flag Link Wed Jul 16, 2008
There are several components that go into the initial offering price. The true value of the home, Your level of interest, the number of other interested parties, and the seller's motivation. If a home is listed 20% under market value, you absolutely love it and so does 6 other interested buyers then the question probably isn't how much lower are you going to offer but how much over will you have to go. if the property is 20% over priced, you will buy if and only if you get it at the right price and nobdy else wants it including the seller then obviously its going to be quite low.

You need to hire an expert that you are very comfortable withand is knowedgeable. They should determine fair market value, do their best to get any and all information they can about the seller and the seller's motivation and consult with you to determine how it fits your needs. ( you own a home for both financial gain and personal enjoyment. If you are going to stay in the home until your taken out in a ine box then financial gain is less important than if you are trying to use the property to make enough money to leverage yur dream home in the future) After assessing all of that information, you with the professional you hired strategize where you want to end up and the best way to get there.
Web Reference: http://www.jeffThornton.com
0 votes Thank Flag Link Fri Jun 6, 2008
There is no standard percentage. If you had a buyer's agent, they could tell you where to start and negotiate in your behalf. Assuming you don't, what I suggest is your initial offer should be $10,000 to $20,000 below your final offer. This way you can come up if you get a counter offer. Do not worry about over-paying. The house will not appraise for the mortgage if your offer is too high. Their Realtor will discuss this with the seller.

Keep in mind, if you come in too low initially, you will really insult the homeowner, and will not get a counter offer. The seller is not your enemy. Do you want that house or "a deal'? If the homeowner feels they are being taken advantage of, they will not be as cooperative when it comes to future appointments for engineers, termite inspectors, appraisers, etc., and credits at the closing table.
0 votes Thank Flag Link Fri Jun 6, 2008
As a serious buyer, try to determine based on comps and market research ..etc what you will pay, in short, in your mind so to speak, what is your best offer, considering all; not what the asking price is. But do not insult the seller if pricing ideas are miles apart. Develop your initial buying strategy based on a solid and well thoughtout final offer. Let the seller come to you so to speak. A good broker will create the 'middle' as he/she should and will do in the final analysis.
0 votes Thank Flag Link Fri Jun 6, 2008
Hello Dan, What you need is a CMA (Comparative Market Analysis) based on recent home sales. One of my Queens Realtors will provide you with the recent sales prices of homes based on the one you’re considering. We will tell you how much below the asking price similar homes recently sold for so you can decide what type of offer you would like to make. All I need is the address of the property that you are considering. In addition to this we will also provide you with a real estate rebate of up to 50% of the buyers agent commission at closing.
Web Reference: http://www.sharpbuyers.com
0 votes Thank Flag Link Fri Jun 6, 2008
LOL
I love how i give the same answer as the two "pros" yet i get a TD for it.
0 votes Thank Flag Link Fri Jun 6, 2008
This question keeps coming back. Energizer bunny question. Percentages don't work because the lisitng agent could have priced it below market at market or above market. You need to know the market to decide which it is.
Then you can always offer whatever you want and see if you can get a counter offer.
0 votes Thank Flag Link Fri Jun 6, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
Contact
An average would not be helpful. If the home is over-priced, an offer based on an average would not get you your best deal. If you really want to make your best deal, you should make a buyer's agency agreement with a good REALTOR member of the MLS. The agent will be able to determine a reasonable value of a property and advise you about the offer and negotiating strategy.

You will find a lot of answers to other questions, and validation of my advice that you get a buyer's agent to represent you at the HUD Web site--click the link below:
0 votes Thank Flag Link Fri Jun 6, 2008
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