Home Buying in 05143>Question Details

Wott101, Home Buyer in 05143

When making an initial offer on a home what is the acceptable percentage below the asking price of the home?

Asked by Wott101, 05143 Sat Jun 2, 2012

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LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
1 vote Thank Flag Link Sat Jun 2, 2012
Whatever a seller will accept.......every sellers motivation is different. I usually recommend that will not insult the seller.
If a property is $225K I would recommend coming in at 201K
Hope this helps.
Remember if you want the property and know its the one for you have a buyer agent do the comp study and if the comps are there pay the price.
0 votes Thank Flag Link Thu Aug 2, 2012
The selling price versus list price depends on the area and the typre of listing. For example, short sale listings are often listed below market to leave room for negotiating with the lender, and it is not at unusual for these listings to sell over list price. A standard sale, however, may have more room for flexibility. REO's tend to be priced very close to actual sale prices.
0 votes Thank Flag Link Sat Jun 2, 2012
There is not any percentage you should use. You need to assess what the house is worth in todays market and base your offer on that, you do not know if it is listed at market price already, listed way below market value or priced way too high.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Jun 2, 2012
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