Depends on how it is priced in the listing. We can do an analysis of "recent" comps to see if the house falls in line. Other considerations are the situation, i.e., owner occupied, REO, foreclosure, investor property. Not that market value really has anything to do with how much is owed on the property, but, having said that, banks are really "getting it" right now and bringing down prices considerably in order to move some of their inventory. Sometimes there isn't alot of room to work with and if it is priced right already, that shouldn't matter.

Actually, in a way your first question is the wrong one for two reasons: 1) there's no such thing as an "ideal" fixed percentage rate to discount from an arbitrary listing price, and 2) one should tailor one's offer (the price and terms) for a specific property. Whether or not you opt to work with an agent, you need to do some research. You should get a CMA/BPO, an inspection, and an appraisal to determine the current market-value of that property. Also, keep in mind that the appraisal will carry more weight with a lender (in case you intend to finance your purchase). So, an appraisal should also carry more weight in your ultimate decision on pricing.

The question you should have asked instead of your first one is how does one strategically set one's offering price.

Next, your second question is somewhat irrelevant, because pricing strategy doesn't necessarily differ for lower and higher priced homes in theory. Yet, in practice, some luxury home sellers have been extremely stubborn on their price and terms (thinking they have enough resources to wait for the "perfect" buyer [who will accept their price and terms] to come along); however, if they have to sell soon, and if you're willing to wait for them to soften, then you'll see theory and practice converge ultimately.

Nevertheless, keep in mind that sellers for new listings tend to be less flexible on their price and terms; whereas, sellers for properties, that have been listed awhile, tend to be more flexible on their price and terms.

I echo the theme - get a rock solid idea of what the house is worth from your agent. What I ten do is tear into the seller's position, find out what they owe, what the likely listing commission is, see if there are any outstanding liens....essentially put myself in their shoes. At the end of the day, if you know what they are looking at then you can get an edge in negotiating. But - the bottom line is simply that there are no rules and that buyer's should exploit the advantage that they have.

Give us a call - we're appraising as well as buying/selling with clients - we're completely wired in from both directions.

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276

Leslie,

I should have thought of Solomon as an agent you should contact! His advice in this forum is always spot on and he brings a special expertise to the area where you're buying! Check out some of his answers to other Trulia questions and you'll see what I mean.

Good luck,
Jackie

Leslie,

You are smart to expect concessions on price from a new listing, even newer construction properties, something that would have been unheard of as recently as mid 2008! Further, your own agent will likely advise on the other concessions that may be available to you beyond the offer price. The listing agent is charged with obtaining the highest and best price while protecting the other interests of their client, the seller, so don't look for them to readily share this information with you, the unrepresented buyer.

My office is in Duluth and I'd welcome the opportunity to work with you.

Solomon Greene
REALTOR® / Consultant - Keller Williams Realty Atlanta Partners

Hi, Leslie,

I just addressed the issue of how much to offer on a foreclosed property listing in my blog ( http://www.trulia.com/blog/jackie_campbell/2009/01/what_s_a_… ) but the same principles apply. It all comes down to research on comparable properties in the area, the condition of the property, and how much it's worth to YOU.

I encourage you to get a good agent to represent YOUR interests. I don't know the Duluth area very well at all, but I'm sure you can ask around to find an agent who will fight to protect you in the transaction. The Internet, including this forum, is also very helpful in learning what agents are in your area.

Leslie, tThere is no hard and fast amount off list price--there are many factors that come into play. Your Realtor should give you sold comparisons and area statistics to help evaluate fair market value of the property/development in question. Many new home builders are offering drastic price reductions off list price, as well--depending upon the amount of standing inventory homes they have ready to sell. If you are not working with a Buyer's agent as you enter into a purchase, I encourage you to do so...let me know if I can help you in any way. Good luck!

GREAT QUESTION: It does not matter value of home your buyers agent needs to complete research determine what is best interest for all parties submit a sales offer on property. In some instances if my buyer wants the winning offer we offer more than list price, as long as home appraises for value offered.

Each home has it own circumstance regarding an offer made.