Home Buying in Freehold>Question Details

Mike Rogers, Home Buyer in Orlando, FL

What % of the asking price is considered good when making an offer on a house. % to start out with and end with.

Asked by Mike Rogers, Orlando, FL Sat Mar 10, 2012

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Mike,

An offer shouldn't be based on percentages. An offer should be based on what similar properties recently sold for. Within those numbers you will have the lowest sold price, the highest sold price, the average sold price and the median sold price. Your offer should be based upon those numbers and very rarely should it exceed the max sold price unless the house you are making an offer is better than the house that sold at max price (more beds, more baths, updated, etc). Once you compare the sold comparable properties then make your offer but don't just pick an offer out of your head based upon a random percentage.

A property priced well from the start may end up selling at 95% of the asking price. Whereas a property that was overpriced to begin with sold at 80% of the asking price. Your agent should know the market and be able to guide you accordingly. An educated buyer has its advantages.
0 votes Thank Flag Link Sat Mar 10, 2012
It really does vary regionally.In general, if I see a place that goes for90%, I figure the buyer has done well. 95-97% is more common. But I have seen them sell for 60& too... and also above the asking price. Remember, as a buyer, you can always go up, but you don't want to be so low that you insult the owner and get them ticked off or are not taken seriously.
0 votes Thank Flag Link Sat Mar 10, 2012
Those figures vary across the country. In the Bay Area, a good starting offer for a regular sale is 95% of the asking price and you hope to end up between 98-103% of asking. For short sales, I'd start with 105% of asking and end around 115%. Where demand is high, it's better to bid higher now than try to chase the market in 6-9 months.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat Mar 10, 2012
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