James, Home Buyer in Palisades Park, NJ

how much is a good negotiation?

Asked by James, Palisades Park, NJ Fri Sep 5, 2008

i was looking at an apt that was listed for 400k. its been on the market for more than 5 months. at how much should i put an offer for this listing? is 320k too low?

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7
Peter J Rogers’ answer
I always tell my buyers "They can only say no' when tthey want to put in a low offer. However your idea is to open negotiations and make a deal to your best advantage. This won't hppen if you upset the seller. A lot depends on what similar appts have sold for recently and whether the selers have lowered their price in the 5 month period.. This is information your realtor can easily tell you.. If recent sales are round say $350,000 then your number is maybe a good starting oint. If the sellers have had it on the market for the same price for 5 months without adjustment then you should probably go away as the are living in "LaLa" land and are not serious sellers. In this market any serious seller has to listen to offers.
0 votes Thank Flag Link Sat Sep 6, 2008
Hi james:

What does your agent say, and why? Like others said below, your agent should have prepared a comparable market analysis for you and, I am sure, by looking for homes up till now, you have a pretty good idea of what is out there, for what price and the condition of the homes.

Days on Market does not necessary translate to an automatic % reduction on making an offer. How long has the house been offered for that price? Are there improvements made? What's the 'current' market condition - we are seeing a surge in Novato, Marin market at certain price range just recently. What's the motivation of the seller?

A good agent who understands the 'CURRENT" market and LOCAL situatioin with great negotiation skills will be able to get your the best deal. What does your agent say?

Best,
Sylvia Barry
Marin Realtor
0 votes Thank Flag Link Sat Sep 6, 2008
Sylvia Barry,…, Real Estate Pro in Marin County, CA
MVP'08
Contact
Dear James,
There is no set answer to this. Your agent needs to give you a market analysis of the area's activity so you can know what the proper pricing is. Let that be your guide, not how long you negotiate for. One property could be priced at the right level, and another one could be priced too high, so use the guidance from your agent to get the property you want at the right price.
Good Luck, Sharon Kozinn
Web Reference: http://sharonkozinn.com
0 votes Thank Flag Link Sat Sep 6, 2008
negotiation is more a function of your need and desire to buy and the sellers motivations as well. You could negotiate a great deal today but if the marketcontinues it's decline you will kick yourself in 6 months. The real question is as others stated value. Negotiating 20% off a home that is 30% overpriced is no great feat. You may even want to over pay if a house is under priced. The key as always is knowledge, knowledge of teh market and knowledge of everyone's level of motivation.
0 votes Thank Flag Link Sat Sep 6, 2008
Get the comps from your agent, is the property priced within reason?
80K under the asking price does not seem that you will be taken seriously and the seller may get insulted.

Good luck with it.
0 votes Thank Flag Link Sat Sep 6, 2008
James: Here's what I said a month ago:

I tell my sellers NEVER to be insulted by an offer. On the other hand, it's hard to take a low offer seriously and even if you continue negotiations, the seller may look at you as trouble from the git go. Get your agent to do a CMA, (he'll know) and then you will know comparitve values. Next, figure out what you want and need. Paying a premium for the "exact" right property is better than a bargain on something unsuitable. You're going to live there for gosh sakes! How come everyone will pay more for a Beemer than than a Yugo? Value is part of it but class is another. Worry more about value than bargain and you'll do much better. Trust me. - Sun Aug 10 2008, 06:35

My opinion is still the same>
0 votes Thank Flag Link Sat Sep 6, 2008
James,

Start the negotiation process where you feel comfortable. If the seller is truly motivated they will work with you.
Have your agent check the recently sold similar properties in this location. these numbers will also help you see where your top number should be .

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Sat Sep 6, 2008
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