Home Buying in Cape Coral>Question Details

Annette, Home Buyer in Cape Coral, FL

.What would be a good starting point 5,7,10% less than asking price. Not looking to low ball.

Asked by Annette, Cape Coral, FL Thu Feb 9, 2012

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Some really great answers to this question. Here is what I tell my buyers:

Cape Coral, Fl is a very special city. Things are different here than the rest of the country. We have foreclosures, short sales, regular sales, we have part of the city on city water and part on well/septic, we have salt water lots and freshwater lots, we have older homes and newer homes, our city was one of the first places to get hit with the housing bust. With all of these different sets of criteria, each home has to be treated differently when comparing prices.

It is extremely important that your agent is knowledgable in all of these areas. A knowledgable agent can show you real comparables and help you understand the value in each of these areas. You will need to compare size, age, taxes, location, etc.............Typically we see a 3% - 8% discount on listing prices. But buyer beware, when a home is listed under price or at market, it is common to have a multiple offer situation. (We see this mostly with foreclosures).

Agent to Agent communication is extremely important when negotiating deals. If you like your agent and find them friendly. Most likely so will other agents. When two agents get along and understand the business. This helps your transaction tremendously.

Good Luck with your search and WELCOME TO CAPE CORAL!
Web Reference: http://ackermanswfl.com
1 vote Thank Flag Link Sat Feb 11, 2012
Good starting point for a properly priced home in the cape is 110% of asking price. Agents are not "fools" in this game, right now for every house out there you have 5 buyers. Inventory low -> prices rise -> market stabilizes = Banks HAPPY.

Read about a Happy First Time Home Buyer in Cape Coral: http://wp.me/p1MLJl-aa

Best of luck, this is a great time to buy, I still can't believe interest rates are this low.
Web Reference: http://blog.house-guy.com/
1 vote Thank Flag Link Thu Feb 23, 2012
I never understand why so many buyers think they have to go in an offer less. If you've looked at the comps and the house is priced correctly, what makes you think a seller will take so much less. If it's priced too high or it needs work, then you've got a chance.
1 vote Thank Flag Link Sat Feb 11, 2012
If you come across a property that has been on the market over 30 days, MAYBE offer something below list price, but if a property is newly listed, in good condition, has all the bells and whistles you want, offer list or over list price. Stop with this percent BELOW list and start thinking percent ABOVE list price. The days of "low-balling" are over, finished, done here in SWFL. I just dumped two buyers this week because of this kind of thinking. I will only work with serious buyers who are looking to but, not just submit offers.
1 vote Thank Flag Link Fri Feb 10, 2012
Everything I see and read about Florida says THE SALE IS OVER AND HOME PRICES ARE GOING UP! If I had the cash money and trust me my wife and I have discussed this, Florida is the place to invest! Do not play games you will lose! The bottom has hit and the smart people are buying real estate in this area, Florida is up 10% in the last 3 months where is this headed? God only made so much property with these amenities so you either try to grind it out or time the market but if you wait it will cost you, as I know it’s costing me because I’m not there yet. ps dont be greedy you will lose!
1 vote Thank Flag Link Thu Feb 9, 2012
Ask your Realtor......going with a set # in mind is the wrong approach. look at comps and make an informed decision. If you are working with an agent and their advice is to offer a % of list price.......get a new agent.


jessemcgreevy@gmail.com
239-898-5329
http://www.Domain-RealtyGroup.com
1 vote Thank Flag Link Thu Feb 9, 2012
Annette,

you are obviously interested in a property for your own specific reasons. The question is , how much is it worth to you? This property must have met some or all of your criteria, so why are you now trying to devalue it in your own mind? The current real estate market in SW Florida is extremely competitive, cash buyers are the rule rather than the exception, multiple offer situations are commonplace. The chances are that the same things that made this property stand out to you, are also some of the same things that make it attractive to others.

Simply put, there is no magic formula, no hard and fast rule on how to structure your offer. The only thing you have to go on is "how much is this worth to me?" "from a common sense standpoint, what is my budget?" and "how is this property priced vs. what is considered fair market value?"

Answer those questions, then make your offer accordingly. Make your first offer your best offer, you may not get a second shot.

Neil G. Blair-Bennett
(239) 645-3798
Managing Broker
NeilBlairBennett@gmail.com
Web Reference: http://Hope4HomeBuyers.info
1 vote Thank Flag Link Thu Feb 9, 2012
Due to heavy competition in the Cape Coral market, there has never been room for low balls. 40% of properties go under contract within 30 days. Don’t miss out on a home you really like.

Since 1/1/2013
63 sold - Gulf Access Pool Home
Median list price to sale price 95.53%

95 sold - Pool Homes not on water
Median list price to sale price 97.20%

136 sold - Homes no pool, not on water
Median list price to sale price 97.25%
0 votes Thank Flag Link Sat Feb 9, 2013
I recommend not taking advice from people who profit off your gullibility on how gullible to be. Everyone knows realtor list a property for MORE than they hope to get. So to suggest you should pay that price or more is insulting. I never disliked realtors until this moment.
0 votes Thank Flag Link Wed Feb 6, 2013
It depends on the market and the price. In our market (southeast Florida) nice homes under $300,000 are selling in days mostly within 97% of list.

Car dealers always have the same markup which is not true for home sellers. Some sellers like to list with margin to negotiate and others do not, so it ALWAYS depends on the comps!
0 votes Thank Flag Link Tue Feb 14, 2012
I understand realtors wanting full price . To answer question I am getting back( why offer less) same reason you won't walk in car dealership and pay sticker price or offer more because it has the bells and whistles. I would never offer more than listing price . Thats crazy.
0 votes Thank Flag Link Tue Feb 14, 2012
Hello Annette,

Don't low-ball your offer! A real estate appraisal should help to establish a property's value.

If you want to purchase a property at a certain price and then find that the appraised value comes in lower, you can often renegotiate the price with a motivated seller. Just be sure to include a clause in the purchase agreement that stipulates a selling price contingent on the appraised value of the house.

For more interesting facts please feel free to view my website and learn more about me as well as my dedication to the real estate profession @ http://thereseclapp.com.

Have a great rest of your evening!!

Regards,


Therese A Clapp, Realtor®
MBA - International Business, GRI, SFR, AHWD, REPM
Member of REBAC: Educated in Buyer Representation
Century 21 Sunbelt Realty, Inc.
725 Cape Coral Pkwy W
Cape Coral, FL 33914
Primary: 239-542-4777
E-mail: TClappCentury21@aol.com
http://thereseclapp.com

2011 Platinum Five Star Education Award Recipient
Community of REALTOR® Excellence
REALTOR® Association of Greater Fort Myers and the Beach, Inc.
Web Reference: http://thereseclapp.com/
0 votes Thank Flag Link Thu Feb 9, 2012
If I were your Realtor, it would depend on the comps in the area and our strategy which I certainly wouldn't disclose in this public forum.

My clients like my negotiating abilities and I plan to keep it that way.

If you were really concerned with making a deal, you would have an experienced agent by your side.

Kevin@kevincloutier.com
239-246-6639

Cheers

Kevin Cloutier
Southern Premier Realty
Cape Coral
0 votes Thank Flag Link Thu Feb 9, 2012
In 2011, homes in Lee County, FL sold on average for 94% of asking price. While it depends on the individual property that you are asking about, this macro view for the county may prove helpful in establishing your offering price.

Here is a blog post detailing asking to selling ratios for Lee County property: http://www.gulfreturns.com/2012/01/fort-myers-homes-sold-for…

Good luck with your purchase!
0 votes Thank Flag Link Thu Feb 9, 2012
Wouldn't a better starting point be knowing how realistic that LISTING PRICE is?

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.

Good luck and may God bless
0 votes Thank Flag Link Thu Feb 9, 2012
It depends on the property. Houses that are properly priced sell rather quickly and close to asking price. Over priced properties will sit until they are reduced to a reasonable price. The best way to go about it is to see what has sold and what is now pending that is similar to what you are looking at to get an idea on what to offer. Generally i think it is better not to offer a very low offer on a property that is over priced. It is usually better to avoid that property and make a good offer on a property that is priced right. Unfortunately, it often takes a wile for an overpriced seller to accept that their home isn't worth what they think it is and they are often not open to reasonable offers when they still have unreasonable expectations.
Web Reference: http://www.joesansone.com
0 votes Thank Flag Link Thu Feb 9, 2012
A rule of thumb I work with is to offer no lower than about 5% below the average closing percentage for the area. For example, in my neighborhood, homes have been selling for about 98-100% of the asking price. So, I would recommend offering between 93-95% of the asking price as a start. But, a lot depends on how much interest there is in the property. If you see the open house packed with interested buyers, expect to offer something within a percent or two of the average sold percentage to stay competitive.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Thu Feb 9, 2012
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