Home Buying in New York>Question Details

tasha0696, Home Buyer in Brooklyn, NY

When do I negotiate the asking price?

Asked by tasha0696, Brooklyn, NY Mon Jan 14, 2013

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opondomusa’s answer
No seller expects you to accept the first offer that they make without a counter offer.So you can start negotiating as soon as the first offer is made.
For the last few years, the real estate industry has been a buyer's market. There was an overflow of homes on the market, and selling prices have been dropping since the economy's collapse in 2008. But that's all started to change in recent months.

Across the country, in both metropolitan cities and rural communities, there's a reduction of inventory, and prices are on the rise. In other words, there are fewer homes for sale, and the ones that are on the market are being listed at higher prices. So, how can you get the best deal on a home without overpaying? Here are some tips that can help you fine-tune your negotiation skills:
0 votes Thank Flag Link Thu Jan 17, 2013
Hello Tasha,

The negotiation begins when you make your offer.

---
Nicolas Puygrenier ǀ Licensed Real Estate Broker
Mona Lisa Real Estate Group LLC
419 Lafayette Street, New York, NY 10003
Telephone: 917 499 1917
Email: nicolas.puygrenier@monalisanyc.com
0 votes Thank Flag Link Wed Jan 30, 2013
Unless you are offering full price, and yes than can and does happen, when you make your initial offer, you are negotiating the price.
0 votes Thank Flag Link Sat Jan 19, 2013
Hi Tasha,

Thank goodness you are in Brooklyn and as such, I think you can feel free to consider the response from the nowhere nearby "Broker" that said "Just make an offer that gives you a little "wiggle room" and let the negotiations begin." - Just pretend you didn't hear that! Gasp!

Clearly you are working alone or perhaps with your tailor, but what I didn't think was as clear was that you were the purchaser in this negotiation and not the ever so skilled FSBO! You haven't jumped in and said that you are not the seller, but just for grins - lets say you are. You already negotiated the asking price when you decided to go it alone without a licensed real estate agent! (As always, if I could have said that kinder, I would have!) But FSBO's received on average 20% lower offers then when represented by an agent! National Association of Realtors statistic - I'm not making that up! But then you saved that 6% by going it alone - so there!

Now Tasha, if you are the buyer in this scenario...take the above tip and submit away! And Tasha -if you are out there buying a home on your own - in all fairness I can't give you any more props than I gave the FSBO. It's not monopoly people! It's the largest contractual deal you will make in your life! I hope thinking of it from that perspective, will you in making a wise decision on whether or not to go it alone!

I do work in Brooklyn and Manhattan; should you need any further advice or assistance, please feel free to contact me!

Best of Luck,
Jaymes
0 votes Thank Flag Link Sat Jan 19, 2013
Hello Tasha you negotiate the asking price when you submit an offer. If you need help in this area give me a call or email. I repeat it is never a good idea to purchase any property without a broker on your side. It does not cost you anything it will only help you. Give me a call or email me.
0 votes Thank Flag Link Sat Jan 19, 2013
Hello Tasha. My fellow colleagues have made excellent and valid points. Negotiating the asking price takes place once an offer is made. This means that you submit an offer in writing VIA your Agent to the Sellers Agent. The negotiations have begun. It is not unusual to go back and forth a few times until an agreement is met between yourself, the buyer, and the seller.

It is also a good idea to know whether or not an offer is already on the table. If there is another offer on the table, and the home is really priced to sell--you may only have one shot at giving your offer. We are seeing this here on Long Island with really well priced properties in good condition.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.


Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
Direct: 631-638-6193
Mobile: (631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
http://www.facebook.com/ISellNY
DeVonte.Williamson@cbmoves.com
0 votes Thank Flag Link Tue Jan 15, 2013
Tasha,

Just make an offer that gives you a little "wiggle room" and let the negotiations begin.
0 votes Thank Flag Link Tue Jan 15, 2013
Tasha, you begin the negotiation process by making an offer.
If you know the market, you will know if the asking price is reasonable.
And you will know how strong the demand is and could become.
It is useful for you to find out if there have been any offers already.
And if any offers have been raised and are still outstanding.
You will then know the price change history from the beginning.
With this knowledge your first offer could be above, at, or below the ask.
The purpose of your offer is to get acceptance or a counter-offer.
If you do not get a response, you will have to raise your offer.
When you raise your offer, you should have a good argument for it.
Finally, pay attention to the timing.
When the season ends, everyone re-evaluates the prices.
You should use a good broker to represent you.
It does not cost you anything; commissions are paid by the seller.
0 votes Thank Flag Link Mon Jan 14, 2013
Dear Tasha,

It is a buyers market and you should be negotiating price with your first offer
You can not submit a price and turn around to the seller or the seller's broker and say I would like to submit a lower offer. Tasha, what I am getting from your question, is that you are ready to shop for a home and you are looking for some professional guidance and advice.

If you are looking in Greenpoint or Williamsburg, there will be no negotiations. As soon as properties pop up, they sell.

If you have further questions, please feel free to give me a call at 917-662-1846


Good luck,
Liz Caruso
Realtor, CBR, SFR
0 votes Thank Flag Link Mon Jan 14, 2013
Hi Tasha, there does seem to be some confusion about your question and I see many other brokers have answers but I wanted to add my thoughts. Assuming you have seen a property you like and also perhaps even made an offer, at this point you are in a negotiation of the price (unless you just went to the seller or their broker and said "I'll take it for what you are asking"). Since the tone of your question seems to indicate you may be at the point of having seen something you like but are new to buying real estate and also not working with a broker of your own (yes, this is a dangerous combination!) I would also add the importance of having a real estate attorney representing you. Beyond any discussion of price, this person will perform "due diligence" on the property and represent you in the legal aspects of the sale including negotiating a fair contract of sale that keeps you from getting taken advantage of- invaluable to even the most savvy of buyers, it is essential if you are buying a co-op or condo in NYC. Best of luck I'm your purchase.
0 votes Thank Flag Link Mon Jan 14, 2013
Hi there-

this is such a delicate question, and really depends on the current market, and also the micro market that you are looking for property in.

In my opinion it depends on the parties involved in the sale as well as the particular property.(how long has it been on the market, have they recently had a price reduction, how agressive/honest is the broker representing the property, etc.)

It's a wonderful question, and in my opinion this is where buyer's broker's earn their keep, especially in a more active market.

What neighborhood are you looking in?
0 votes Thank Flag Link Mon Jan 14, 2013
Tasha0696,
Your question is a little unclear when you ask "when do I negotiate the asking price?" I am assuming from your having posted in "Homebuying in New York" that you are a buyer. I am not clear if you have found a property and are about to make an offer, or if you are asking well in advance of locating a property.
What is very critical is that you work with a skilled, experienced agent. If you have not found the property yet, we can take you through the steps. If you have found a property, you absolutely need an expert negotiator on your side. There is also much more to an offer than a number.

Best,
Jenet Levy
Halstead Property, LLC
jlevy@halstead.com
212 381-4268
http://jenetlevy.halstead.com
0 votes Thank Flag Link Mon Jan 14, 2013
This question has been answered. What I'll address is that you are going through this alone. I know this because of your question. So, you have chosen to not use a buyers broker who can research the property, look at it in ways you would not and ultimately craft a first offer thereby opening a negotiation scenario. Good for you. Let us know how it all worked out.
0 votes Thank Flag Link Mon Jan 14, 2013
Hi, You submit an offer when you have seen the property and are sure you want to move forward. Base your offer on what has sold within the past six months and also what you truly feel its worth after seeing similar properties. Show the seller you have done your homework otherwise shooting in the dark can be a dead end.

Chris
0 votes Thank Flag Link Mon Jan 14, 2013
The negotiations start as soon as you present your first offer. It is best to work with an experienced real estate agent in your area.
0 votes Thank Flag Link Mon Jan 14, 2013
Agents who know how to negotiate well use every opportunity to negotiate the price even when they are not directly "negotiating" ... Direct negotiations start with preparing for the offer, making an offer and negotiation it. You would need to know the market and recent sales in the area very well, as well as size, exact location and condition of all of the comparable properties to be able to explain where your price is coming from and why it should be higher or lower than any of the comps. Also, when you negotiate, you do not just negotiate the price - you negotiate the package deal, that may include many different components, such as renovations, furniture, who pays the transfer tax (on sponsor sales), closing costs concessions, etc.
0 votes Thank Flag Link Mon Jan 14, 2013
You have 2 opportunities to negotiate:
When you make the initial OFFER, and when you have completed the INSPECTIONS and before you release your CONTINGENCIES.

Make sure that your initial OFFER allows for the MARKET VALUE of the property based on the CMA your Agent does for you. Do not rely on the LISTING PRICE as being realistic.
0 votes Thank Flag Link Mon Jan 14, 2013
When you submit your application and supporting documents to the broker, they will negotiate for you.
Better to work with a broker who is experienced and has landlord connections
0 votes Thank Flag Link Mon Jan 14, 2013
That's what a broker's job is. Assuming that you are referring to a purchase as opposed to a rental, when you negotiate on your own it often weakens your position. A skilled broker knows exactly how to structure a deal, when to push, and how much he or she can push. Also, a good broker will understand where the market is trading and this plays a huge factor in negotiating price. However, if a particular property has been sitting on the market for an extended period of time, this potentially puts you in the driver's seat as far as working the price more in your favor.
0 votes Thank Flag Link Mon Jan 14, 2013
A buyer typically makes an offer (which may be less than the asking price, equal to or even exceeding it, based upon their needs and perceptions) once he has determined that this is the property they wish to buy. If everything goes according to Hoyle afterward, once that offer is accepted, there is no further negotiation.
0 votes Thank Flag Link Mon Jan 14, 2013
What is your agent advising...in order to determine a fair offer, review comps, recently sold similar properties in the immediate area, see what the data suggests and go from there.
0 votes Thank Flag Link Mon Jan 14, 2013
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