Home Buying in 11354>Question Details

Eric Lim, Home Buyer in Flushing, Queens, NY

what kind of dicount % should I ask for when I am interested in the property?? (10% or 15% on __%)

Asked by Eric Lim, Flushing, Queens, NY Mon Nov 19, 2012

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11
Wrong question.

Right question: "How do I make sure I pay no more than the fair market value of the property?" And a bonus question: "How can I get the best price for the property?"

Basing your calculations on the listing price of the property is meaningless . . . because there's often little or no relationship between listing price and fair market value. You're assuming there is. There isn't.

First, find out what the property really, truly is worth. Ask your Realtor to run a CMA (competitive market analysis) on the property. That figure is the MOST you should pay.

You may want to offer less. That's a strategy your Realtor can help you with. There are times that a full-price offer makes sense. There are other times when you should offer 10%, 20%, or more off the listing price. But you won't know until you know the real value of the property and develop a strategy for paying no more than that amount.

Hope that helps.
1 vote Thank Flag Link Tue Nov 20, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Eric,

Unless you are paying cash, you may have a hard time getting a seller to accept an offer for any % less than the list price.

Best of luck to you.

Kawain Payne, Realtor
1 vote Thank Flag Link Mon Nov 19, 2012
Most of the stuff in my market has been going for around 97% of asking price
0 votes Thank Flag Link Thu Apr 10, 2014
Eric, it also depends on how long the listing has been on the market. You may not have much luck driving down prices in a new listing vs a listing that has been around for quite some time.
0 votes Thank Flag Link Thu Apr 10, 2014
Hi Eric, no-one can accurately answer your question without knowing which property and running comparable sales. If you want the house I wouldn't play games. I had a listing in Flushing a few months ago and we had multiple offers within a few days. We also had people coming in trying to low-ball because they assumed everywhere is a buyer's market. The market in Flushing is very strong and inventory is tight. Your best bet is to get a buyer's agent that can run the comps for you and advise you as to what a fair offer is. Good luck.
Tom Brady SFR, e-PRO, SRES, GREEN, BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
#1 Listing & Selling Brokerage in NY
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Tue Nov 20, 2012
Eric, it depends on if you are a buyer or a player.
In many areas of the country real estate value are increasing. In the premium areas of Dunedin FL buyers will be bringing 23 to 50 thousand dollars in cash to pay the difference of the predictably low appraisal. .

If you are a real buyer, as opposed to a predatory, paper hanging investor, you will offer market value.
Market value works pretty well. Notice I make no reference to list price, tax value, mortgage balance, distress status or the many 'vapors' buyer like to chase.

Know why you are buying. (residence, cash flow, long hold, flip, wholesale)
Know the 'like kind' comps.
Know the community forecast.
Then make your fair market value (according to your goals) offer.
Some cases X cash flow requires X purchase price. Not emotional, just business.
The good stuff is selling ABOVE list price with less than 3 days on market. How would your plan work in that environment?

The important thing to recognize is, "if you don't ask the answer is ALWAYS No!" So, get your offer in and get the conversation started. You never know what is on the other side if you don't open the door.

Best of success to you.
0 votes Thank Flag Link Tue Nov 20, 2012
Expecting any type of discount when purchasing property, in the present market, could be the ingredient resulting in disappointment.

Buy working with a local real estate professional you should be able to review recent sales comparison information to arrive at a "game plan" that produces information on which to base a reasonable offer and not one the offends the seller by proposing an off the wall offer based on guess work.

Contrary to what many buyers believe, homes in some cases are selling for more than the asking price. Where would that leave you on a discounted offer of 15%. You will most assuredly stand a much greater chance of success by working with accurate data.

Best wishes,

Bill
0 votes Thank Flag Link Tue Nov 20, 2012
Hi, There is no quick answer to this question. How do you know the property is priced right? It's best to make an educated offer otherwise you look like you are shooting in the dark and no seller will take you seriously. Some sellers may not even want to deal with you if they feel you are just low balling, remember there are emotions involved for sellers. Youir best bet is to view some similiar properties in the area and also the sold comps for the past 6 months, then offer what you feel the property is worth.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Tue Nov 20, 2012
Depends--review comps with your agent, recently closed similar properties in the immediate area, see what the data suggests and go from there; keep in mind that if a property is priced on target, or slightly below, multiple offers may occur....
0 votes Thank Flag Link Tue Nov 20, 2012
Hi Eric. I think you're coming at this the wrong way. It's all about the house's value. Some houses are listed in the market for a fair price, some are listed on the high end and few just under what their value really is.

You should focus on learning what a property's value is within the area you're looking for. Take into consideration any needed repairs or upgrades, the amount of rooms from one house to the other, garage or no garage, etc. and also your budget and monthly payment should have a significant importance.

If you're looking for a better deal, I suggest you look for houses that need a lot of work, or foreclosure properties. You'll more than likely do better on those.

Good luck!

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
jmeneses@snb.com
0 votes Thank Flag Link Tue Nov 20, 2012
Eric,

Ask the Realtor who is representing your interests to run recent comparative local sales so that you know what the market value is of the home that interests you.

Your opening offer can be a bit less than this figure.

Also consider what the home means to you; it is more than a commodity.
0 votes Thank Flag Link Mon Nov 19, 2012
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