Hi Manvi. You should seek out help from a qualified and reputable real estate professional who specializes in the area. Palo Alto is an extremely unique market and price drops do not necesarily mean that a home is over priced. Using only one other home to guage the sales price from another is not a common practice so I would caution you against using it. There are also ways of making an offer without offending the seller, which a qualified agent should be able to help you with.

give me a call. i'd be happy to discuss the topic further.

Fri May 16 2008, 09:07

There are significant differences between these two houses in size, location, and other factors.
You should get some assistance with your comps.

Sat May 10 2008, 17:48

I admittedly know nothing about Palo Alto (other than by reputation), so I can't advise you on specific negotiating strategy. However, I'm always perplexed when a question refers to "risk offending the seller." Don't worry; I'm not picking on you. This is just a pet peeve of mine. But the point is: So what? Maybe you ought to be offended by the seller overpricing a property, if in fact that's what he/she did.

But it's a free country. Sellers can ask for whatever they wish to. And you can offer whatever you want. Especially in today's market, sellers shouldn't be offended by an offer. They should welcome it.

Realistically, sure, if your offer is way low, the seller might be offended. Again, so what? When a seller receives an offer, he/she can do one of three things: (1) accept it (in which case you may have offered too much), (2) counter it (in which case the seller is signalling that your offer is at least worthy of consideration in his view); or (3) reject it. If he rejects it, does it really matter whether the seller is in some way "offended"? Not really. The end result is the same: Your offer was rejected.

You can have your agent present comps--both what's sold and what hasn't sold--to try to persuade the seller that your offer is competitive with the market. But if you're interested in the property, make an offer for what you're willing to pay. Don't "wait it out." And, who knows? The seller might just accept your offer.

Good luck.

Tue Apr 29 2008, 16:38

Hi Manvi,

Just as the seller is free to list a house at whatever price is deemed reasonable, you are free to make an offer that you deem reasonable. The seller can choose whether or not to give you a counter offer.

Given that 30 somerset place is not selling and you feel 731 de soto is a viable comp., you should offer less than 1.85M if the former did not sell at this price. Worse case you move on to another listing.

Marco

Tue Apr 29 2008, 15:27

Your agent should be able to provide the best guidance on these issues. Also, I would caution you against discussing your potential bidding strategy in a public forum such as this one.

Thu Apr 24 2008, 17:45