Home Buying in 11520>Question Details

tazirose, Home Buyer in Long Beach, NY

how low can you bargain the house from its original offer price??

Asked by tazirose, Long Beach, NY Sat Apr 21, 2012

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It depends on your negotiating skills. Sometimes the answer is 0%. Many times, you can shave 3%-7% off. Sometimes 10%, 15%, 20%, or more.

But Ron makes an excellent point. That question assumes that the asking price in some way reflects the value of the property. It often doesn't.

Example: There's a house priced at $100,000. It's really worth $90,000. You make an offer 6% under the listing price--for $94,000. Your offer is accepted. Great . . . except you've overpaid by $4,000.

Never, ever start off from the list price. Ask your Realtor to do a CMA on the house to determine its value. Then: Pay no more than the CMA. Probably offer less.

In the example above, your Realtor does a CMA and determines that the real value of the house is $90,000. So you resolve to pay no more than $90,000. You might offer less. See: The listing price doesn't even enter into your equation.

Hope that helps.
2 votes Thank Flag Link Sun Apr 22, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Theoretically, you can offer anything -- as low a number as you like -- just as theoretically the seller can ask for as high a number as they like. However, if your offer is too low, the seller might think you are just playing games and/or trying to insult them and not even provide a counter offer or provide a counter offer that is the same as the asking price. So you need to make a realistic -- but it can be aggressive -- first offer. The offer should be based on recent sales so that it can be supported. It might still be rejected or countered, but at least you will have shown that you are serious and that you have done your homework. The other factor to consider is how much cash you are putting down. A low offer is best coupled by an all-cash commitment. To place a low offer when you are only putting, say, 3.5% down is not likely to go anywhere.
0 votes Thank Flag Link Sun Apr 22, 2012
Why does the down payment amount matter? As long as the buyer can obtain financing, the seller shouldn't care (unless they have multiple offers and are looking to minimize chances of financing falling through).
Flag Wed Aug 21, 2013
There is no "magic" number... no magic percentage.

Each home, each property is a different transaction. Each owners motivation is different, each owners equity is different and each buyer's motivation and love the house varies dramatically.

But boy, it sure would make it easier if there was, wouldn't it?
0 votes Thank Flag Link Sun Apr 22, 2012
Alan May, Real Estate Pro in 60201
MVP'08
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Probably a little lower than your offer that the owner accepts.
0 votes Thank Flag Link Sun Apr 22, 2012
You are assuming that the "original offer price" (LISTING PRICE) is a reasonable rock-solid price:
WRONG!
Sometimes, Often in fact, the LISTING PRICE is a number picked out of the air and bears no revelance to the Market Value of the house.
You do know what the Market Value of the house is, don't you?
You'd better find out if you don't.
0 votes Thank Flag Link Sat Apr 21, 2012
Decide what the house is worth to you. Do not negotiate above your means.
0 votes Thank Flag Link Sat Apr 21, 2012
The answer largely depends on a few factors. First the market value based on an evaluation of sales and available comparables. The second factor is the sellers motivation. Get a good buyer's broker to guide you
0 votes Thank Flag Link Sat Apr 21, 2012
There is not set amount. Negotiations are dependent upon many variables, including the seller's motivation, current values in the neighborhood for like amounts, how much you love the house and what you are willing and capable of paying.
0 votes Thank Flag Link Sat Apr 21, 2012
As much as you feel comfortable with.
0 votes Thank Flag Link Sat Apr 21, 2012
There are no set standards as to how much below list to offer--in order to determine a fair offer review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there. Keep in mind that if a property is listed on target, multiple offers may and do occur......
0 votes Thank Flag Link Sat Apr 21, 2012
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