can i offer 10- 15% below asking price?
We are looking to buy our first home and are not sure the "etiquette" of negotiating an offer. Would it be insulting to offer 10-15% below their asking price. I have found a home I really would like to buy and want to be sure I am being considerate of the seller as well as looking out for myself. I think she may be able to get what she is asking for but I also know that negotiation room is left in that price. How low can I start without being insulting?
Karen,
If 10-15% below the asking price is reasonable it would be a good offer. To determine if it is reasonable, check the comps of recently sold similar properties in your location. A review of this information should help you to clarify if your offer is where you need it to be.
The reality is that by making an offer that is too low may offend the owner to the point of refusing to negotiate any further with you. So it is important that you first offer does not push their "off " button.
Good luck,
The "Eckler team"
Karen
I have found the best way to handle this question is to ask yourself: How would I react if I were the seller?
Both the buyer and the appraiser will use the same comps, so if the value is off that much, then all will know.
Unless you can substantiate your case, then you might be wasting your time. I went to bat with a buyer, we had comps, I even sat down with the Listing Agent (L/A) and the seller face to face and made my case. I was ridiculed by the L/A in front of the seller "Maybe your buyers would rather make an offer on a home south of the boulevard". Ouch!
Revenge is sweet. They've put money into the place, it's still over priced, and it's just sitting there....
So be prepared to walk away if the seller will not be reasonable when you think you are right.
If its a foreclosure or short sale that wouldnt be rude at all. If its a house that just came on the market than yes I think it would be rude...but if its been on longer than 4-5 months than it doesnt hurt to ask.
Michelle Windle
mwindle@mtg-group.com
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GOOD QUESTION: Your buyers agent should be able to comp the property review what is your best interest. HOWEVER you are correct not wanting to low ball an offer get the seller shut down.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
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