Home Buying in 89436>Question Details

Robert, Home Buyer in 89130

what percentage less is an appropriate amount to offer on a house?

Asked by Robert, 89130 Sat Dec 3, 2011

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The simple answer is that there isn't an exact percentage. If the property is a short sale or REO, then it can be pretty easy to figure out what the lender is going to be willing to take. If your agent is knowledgeable, they should have an idea of what the lender will be willing to accept once they determine who the lender is, and what type of loan it is.

However if the home is being sold as a traditional sale without any lender involved, an experienced buyers agent should be able to probe the listing agent for information and clues about what the seller's motivation is behind wanting to sell. This information will help you determine how quickly the need to sell. If their situation wont allow them to hold out for the best offer, then you should be able to negotiate a lower price. Obviously, the more urgent the need to sell, the lower in price they are likely to go.
0 votes Thank Flag Link Fri Feb 24, 2012
There are no set standards as to how much below list one should offer; therefore 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, or slightly below, multiple offers may occur.
0 votes Thank Flag Link Sun Dec 4, 2011
Robert,
It all depends on the property. Right now in the 89436 area, there are alot of short sales. Many agents will under price the listing in order to get an offer right away. In this situation, the seller just wants out. Since they are underwater anyway, they accept most any semi-reasonable offer. Their lien holder has the final say and will decide what they will agree to.

What you need to do is get a good agent to run comparibles (CMA). Besides looking at the solds for the last 3 months, look at the active listings and how long they have been on the market. They are the competition to the house you are looking at. Is it priced high, low or just about right? Are they short sales, bank owned or regular sales. There are to many variables to make a blanket statement that offers should start a XX% below asking.

Hope this helps!

Fred
0 votes Thank Flag Link Sun Dec 4, 2011
This is an interesting question. "what percentage less" If all houses where the same and all locations the same this would be simple. But I would suggest you need to figure out how much you want the house and if you lost the house because you bit too low would you be upset? If you would be upset. I suggest bidding higher.

But always as a local agent as there are there to help you.
0 votes Thank Flag Link Sat Dec 3, 2011
There is no appropriate percentage but generally if it's 10% less than list price on a bank owned the the bank won't even look at it. Meaning, no counter offer, nothing. On average SFR homes, in the Reno/Sparks area, have sold between 96%-97% of the list price from January 2011 until now. The thing is list price doesn't mean market value. You may come upon a property that is listed below market value and will procure multiple offers. If you get into a multiple offer situation then you better go above list price or you don't have a chance. If you want room to negotiate find something that's been on the market for awhile that other buyers haven't offered on.
Web Reference: http://www.renownhomes.com
0 votes Thank Flag Link Sat Dec 3, 2011
It depends, Robert, on what value you place on the property.
0 votes Thank Flag Link Sat Dec 3, 2011
Hi Robert,

There is no percentage. If you're not working with a Realtor, hire one - in most cases this won't cost you anything as the seller pays the commission of both the listing agent and the selling agent/buyer's agent. Once you have a Realtor (if you don't already), have them do a Comparative Market Analysis (CMA) on any property you wish to submit an offer on. Have them use SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3 months. This will give you current market value and that is what you should base your offer on - not on list price.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sat Dec 3, 2011
I agree with Dorene. Each market is different. In Tampa, bank-owned properties are often listed below market value in hopes of getting multiple offers, and bidding the price upwards. If a buyer put in an offer below listed price, they wouldn't have a chance. You need a Realtor to help you navigate the market.
Web Reference: http://tampahouse1.com
0 votes Thank Flag Link Sat Dec 3, 2011
Dear Robert,
Take my advice and call a few buyer agents who work in your area. In order to advise you on what to offer, you need a Professional to take a look at the property in questions and to run some diagnostics for you. Each property is different, the motivation of the seller also varies with each situation.There is no set percentage and some homes will also sell for the asking price.
0 votes Thank Flag Link Sat Dec 3, 2011
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