Home Buying in Waldwick>Question Details

Sheriff247365, Other/Just Looking in Waldwick, NJ

What percentage less do buyers offer when bidding on a home for sale? Do you offer less for any home your interested in for sale?

Asked by Sheriff247365, Waldwick, NJ Sun Apr 22, 2012

IF the home is listed below market price do people still offer less?

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Answers

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The answer to your question depends greatly on how much you value the house. If you're a seller, don't be surprised if offers come in 20% below the asking price in hopes that the buyer will get a 10% discount.

With that being said, however, there are some homes that are priced just below market value as a way of driving the price up with competing bids. If you're working with an agent you trust, you can ask him or her for guidance. If the agent is a disclosed dual agent -- representing both the buyer and the seller -- he/she is limited to the advice that he/she can give since he/she is not supposed to put one party at an advantage over the other.

In the event you're a buyer who is working with a buyer's broker/agent whose loyalty is solely to you, then use his/her expertise to help you value the house under consideration to formulate your offer.

Try to remember: sellers are people, too, and the home that they are selling can be chocked full of memories. Even if you low-ball there is a way not to insult the seller and still get to "yes."

If there's any further way I can be of help, please call or email me.

Best wishes,

Jay
0 votes Thank Flag Link Sat Apr 28, 2012
There are a lot of factors agents use when submitting an offer on a house. One of the most important is comparable sales data. Comps tell us what other buyers have paid for a similar house, thereby determining market value. There is no predetermined percentage that we use. We also look at days on market. This statistic will give you an indication of how motivated the seller might be to sell. The longer, the better for a buyer. Studies show that a house that is priced too high from the start will sell for less in a longer time period than a similar house that was priced right from the start.

It will all boil down to how much you think the house is worth to you--Will you be staying there for years?--and how much the sellers are willing to let it go for. Don't get so caught up in the number that you lose sight of the reason you are buying.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Apr 23, 2012
Hi Diane, Thank you for your response. The reason I am buying is only to get out of renting and be able to possibly afford a home in a great town so my kids can finish school in a great district. The home is not in a desirable position. (corner of a highway side street) I believe that is one reason it is priced low. It's an older home but it's in move in condition. The other reason it's priced low is it's an estate home. The owner is also the realtor. That is how I got to see it so soon. This town the houses usually run in the 300's and up. The house two houses up on the same side away from the highway is listed at 405,000. It's obviously a nicer house with renovations but still only two houses farther from the highway. I just wasn't sure if there was a set amount people offer a bit less only because I'm not in the realtor market nor have I ever purchased a home before at the same time I don't want to embarrass myself because of not having knowledge of this stuff.
Flag Mon Apr 23, 2012
Great, now ask her for the comparables she used in setting the price! Good luck!
0 votes Thank Flag Link Sun Apr 22, 2012
Hi thank you for your replies. the realtor that I am consulting with is actually the owner of this home I am looking at. It's the only home I could afford in the area but it also the home on the corner of a highway. Fortunately I feel a little awkward offering too much less when the high is priced very low. $199,000. I was one of the first to see it because I ck. the NJMLS everyday and get notifications, so I called this realtor immediately and now I have to use her. :D She's been very nice and only honest so far, I've been to see the house like 3 times already.
0 votes Thank Flag Link Sun Apr 22, 2012
Working with a Realtor is your best bet since we can supply you with all the comparable properties in the area.
Web Reference: http://www.carolvidovic.com
0 votes Thank Flag Link Sun Apr 22, 2012
As the answers before I also recommend working with a realtor will help in the bidding. They can look up the history and compare to other properties and may have prior knowledge of this particular house!
0 votes Thank Flag Link Sun Apr 22, 2012
When bidding on a home for sale, your offer will depend on how many offers does the listing agent expect to receive. If he/she is receiving a lot of offers you have to determine what your highest, best and clean offer would be to be considered. The higher your offer, the less contingency you have and not asking for a seller's credit , the more chance your offer will be considered. Your pre-approval letter should also be coming from a direct lender and not from a mortgage broker, put a minimum of 3% of your offered price to show that you are sincere in buying this home.
0 votes Thank Flag Link Sun Apr 22, 2012
Work with a REALTOR,do the comps and then make an offer!!!!!

To make a blanket statement in answer to this question is impossible.
0 votes Thank Flag Link Sun Apr 22, 2012
To get an answer to your question you must check with your local real estate professional to find out what the current average list price to sold price ratio is in your area. That will let you know on average how much sellers are discounting their properties. An agent with strong negotiating skills will always try to get you the most house for the least amount of money, but it helps when you make an educated offer.
0 votes Thank Flag Link Sun Apr 22, 2012
There is definately no rule about an offer. A home that is priced right will attract offers. If you apply a formula when making an offer, you may miss out on the Right Property.
0 votes Thank Flag Link Sun Apr 22, 2012
Sheriff, As mentioned in my other answer to you, you really need to rely on your Realtor to help you in this area. They should be knowledgable in the market and working for your interests, not the sellers. Leonard gave a good answer to the general question previous to my reply and I agree with him.

James Lockard
REaltor Associate
RE/MAX Properties - Saddle River
Office 201-825-6600
Cell: 201-674-3114
0 votes • Comment • Flag • Delete • A moment ago
0 votes Thank Flag Link Sun Apr 22, 2012
Sheriff, the answer is "it depends".

There's so much difference between homes on the market (location, condition of home/property, whether the kitchen and bathrooms have been renovated, how long the home has been listed, etc.

A good realtor can give you the average percentage of selling prices compared to listing prices for whatever town you're interested in, but remember that's just an average.

If you're looking at a home that has been on the market for a long time, ask your realtor to get you a history of what the initial listing price was, when it was reduced and by how much, etc.; sometimes a seller isn't very motivated or doesn't have a realistic idea of what the market feels his home is worth.

On the other hand, when a home is listed that is a really good value for the money, is savvy buyer might snap it up at the listing price, and we've even started to see bidding wars again. To become a savvy buyer you really have to know the LOCAL real estate market. Look at as many homes as you can in your town that meet your qualifications. Ask a realtor to give you a list of what homes he/she feels are really good values (some realtors call these "shiny pennies"). If the realtor doesn't thoroughly know the LOCAL market, find someone else whom you can trust.
0 votes Thank Flag Link Sun Apr 22, 2012
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