Home Buying in 36830>Question Details

John W. Abra…, Home Buyer in Auburn, AL

What percent of a price listed for a house is usually offered?

Asked by John W. Abrams, Auburn, AL Tue Oct 12, 2010

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Dan’s answer
Offer 50% of asking price. Worse that can happen is no deal. Move on to next home, offer 50% of asking price. Eventually you will find a motivated seller. What is the rush? Home prices will continue to fall for the foreseeable future. Sorry, but buying a home absent a huge discount is a guaranteed way to lose lots of money. Find the motivated sellers.
0 votes Thank Flag Link Tue Jun 14, 2011
John, any Realtor you choose to work with should be able to tell you what homes in your area are selling for vs. the list price. In the markets where I am the selling, Baldwin and Mobile counties, homes are selling-on average-for approximately 93% to 97% of the list price over the last 6 months, depending on the neighborhood or immediate area. It looks like you have a couple of competent agents answering you from Auburn, but if you need a referral my company (Coldwell Banker) has several agents working in that area and I can refer you to one that would be more than happy to help you. email me at lizsells@live.com or call me at 251-367-3602. Best wishes to you in your real estate endeavors!
1 vote Thank Flag Link Mon Oct 18, 2010

It is up to you, as the buyer, to offer what you think a house is worth. Why pay any more for a house simply because the seller thinks it is worth a certain price? Do not worry about insulting a seller. You never know if you are making a seller's day in that nobody might have made any offer on their house. Imagine if you don't make an offer on a house because you fear that you will insult the seller, only to later find out that the house sold for less than what you were going to offer for it.

A real estate agent should be able to provide you the average percentage of the list price that houses are selling for in your area. However, that number alone should not set your offering strategy since you do not know which sellers are overpricing their houses and which ones are underpricing their houses. That number will tell you is whether the market is hot or not. For example, if houses are commonly selling for above list price, then that market is hot.


Web Reference: http://www.RichLeeRE.com/
0 votes Thank Flag Link Mon Oct 18, 2010
This is a question that can go in many different directions. First of all you need to know if the house is priced competively compared to other homes in the area. Second of all you need to know what homes that are similar to one you're buying have recently sold for. Also the condition of the home is important and you have to calculate any major renovations or repairs. Lastly, if the seller must get out asap then you may have an advantage of going a little lower than average on the price.

Simply put, as a whole there are many scenarios when it comes to price, so analyze your situation in its entirety and consultant your agent.
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Tue Oct 12, 2010
HI John,
It depends on the house and who is selling it. Remember that regular people who are selling the house are going to react emotionally to your offer. You want to offer a price that doesn't insult them so that they are encouraged to negotiate. I have seen better final prices with a better initial offer. That said, if a bank is selling the house, it is a more businesslike deal. If you can explain a low offer to a bank in an accompanying letter with your offer, you will have better luck. The agent you choose has to be experienced in the local market so they can guide you through the process. All the rules have changed in the last three years. Make sure your agent knows that! Best wishes with your offer. Let me know if I can help.
Rita Kempf
Associate Broker, First Realty
0 votes Thank Flag Link Tue Oct 12, 2010
Great answers you guys...awsome :)
0 votes Thank Flag Link Tue Oct 12, 2010
It depends on the market area, the sold comparables, how long the property has been on the market, if it's a foreclosure or a private seller. There are so many variables to take into consideration when offers are submitted. And, there isn't a standard answer. I suggest you speak with a realtor knowledgeable about your market area. They best can give you information about the partial neighborhood you're interested in.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Tue Oct 12, 2010
I would contact one of the Auburn Realtors who answered your question. Ask them to break this down for the area, price range and type of home you are looking to purchase. Within 15 minutes of my home two different directions the average price compared to asking price ranges from 97% to 101% while other areas not far from me are much lower. I had a client not long ago looking in an area where the average closing was for 115% of asking price, although this was before some major changes in legislation. Had that buyer been following the advice of friends or media he would have believed he could write an offer for 60% of asking price and still been able to buy. Dealing with anything other than very local and very current information will likely send you down the wrong path. Get specific with someone, your question is a great question.

Another thing to consider is the type of financing you will obtain and the type of sale. Banks selling a property handle offers differently than a private seller. Fannie Mae Homepath financing does not require an appraisal whereas an FHA loan does. You will not be able to offer more than market value with FHA financing in a competitive bidding situation whereas with Homepath you could.

By the way Debra and or Ashley, how about a thumbs up. :)
0 votes Thank Flag Link Tue Oct 12, 2010
Both Ashley & Chris have given you sound responses to your question. I, however, do not use a "percent" when discussing with my client as to a possible offer price. Once you have pulled the current active listings and what has been sold, along with the actual condition of the property is what helps me ascertain a ballpark for purchase price. As, Ashley commented, f price is determined currently by the motivation of the seller & by Chris, in how much you want the property.

Hopefully, we have been able to help you with your question! Have a blessed week:)
0 votes Thank Flag Link Tue Oct 12, 2010
This depends on conditions for the market of the specific property and how well it is priced. You need to look over all comps to determine this and factors that may determine the seller's motivation. If you need anything else, I will be glad to help.

Ashley Miller
0 votes Thank Flag Link Tue Oct 12, 2010
Depends on the market conditions you are playing in. Any realtor can work this number out for you then show you the results and why. You should also ask yourself how badly do you want the property or investment. Normally I suggest you don;t go below 87% of asking. You want to hit the nail on the head on the first shot and eliminate the negotiation process.
Good luck
0 votes Thank Flag Link Tue Oct 12, 2010
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