Lupita,

Oooooooooooh, good question. We find the best way is to closely examine the recently sold comps for your target location, identifying your optimal price you will pay, and then determining the price you need to
begin negotiating at to buy within your price range.

Good luck,
The "Eckler Team"
Century 21 almar and Associates
ecklerteam@comcast.net

Sat May 17 2008, 07:14

I would first do a little research and interview a few agents in the area and then sign a Exclusive Buyer's Agreement with the agent of choice. I would then have the agent research the market to determine the Days On Market (DOM) and also the Average List To Sell percentage so that you will be more informative when you do find the property that you want to make the offer on. This is invaluable information along with many others that I didn't mention such as History of the Property, was it listed with another Brokerage? What did the current owner pay for it? What is the current liabilities on the property? A good agent will consult with you and offer good sound advice through this entire process.

I would say good luck, but with the right information going into the negotiations, most of the time you do not need any!

Make it a GREAT day!

Sat May 17 2008, 04:52

It depends on the property you are bidding on. If the home needs TLC(Tender Loving Care) it is not unusual to see a "lowball" offer. Now is the time to be aggressive. There is no rule of thumb. Submit all offers, do not be shy. You may be surprised.

Fri May 16 2008, 12:14

"Monday, Tuesday, Thursday, Wednesday..." Sorry, a Godfather quote. It is business. Those that go into a negotiation with emotion removed are the one's who make money. Remember the real estate buyer's mantra, "You make money in real estate when you Buy It,."

Fri May 16 2008, 11:34

Lupita,

To add what has already been said, if you really want to buy the house make sure that you do not go too low. You want the sellers to respond to your offer and if you go too low they will feel insulted and just not respond to you. If you don't care if you get the house are not go as low as you want because you don't care if the seller doesn't respond to your offer and you just move on to the next house.

Fri May 16 2008, 11:28

Hank's 100% right. Who cares? Make an offer. Just know what the real value of the property is (use a Realtor and get the comps), then don't offer any more. And probably less.

And as Marian says, some sellers consider any offer below the list price a "low ball" offer. You simply can't worry about that. Do the numbers. Know the value. That should be the absolute most you'll pay. So calculate your offer down from that.

Hope that helps.

Fri May 16 2008, 08:42

In this market if you are making an offer, who cares. Make your offer. Your Realtor has to deliver it. There are no wrong answer there are no wrong offers right now. Most people want to move if they have a house for sale. If it is advertised as a short sale I have had lenders off the record tell me that they would accept 20% under debt to cut a property lose. If it is not advertised as a "must sale" I would say from my experience most sellers hope to get 90% of list. Take those figures and run with them. They are just one more opinion in a long line of them, but they have seemed tested and true from my experience.

Fri May 16 2008, 07:02

Lupita,

Marian is right!

A Market report will give you a good grasp of what homes are really worth in the area you are buying in.

In addition get your realtor to pull the tax records for the home to see what the seller paid for it and how long they have owned the property. You can use average appreciation rates and apply them to their original purchase price.

Have your realtor suppy all of this information to the listing agent when you submit your offer. Sometimes the sellers agent can have a hard time letting their client know their home is overpriced and your agent has to help them along.

A good agent is like a lawyer sometimes. You are hiring them to find out the facts, build your case, and submit the evidence. This way you can be confident you made a great deal on your purchase and if it's not a great deal you can walk away with confidence as well.

Wed May 14 2008, 08:57

Hello Lupita. The term "low-ball offer" is subjective - anything less than a full-price offer could be considered "low-ball". A better reasoning to determine whether or not your offer is appropriate would be to do the following:

- Consult with a buyer's agent (not the same thing as the agent listing the house for sale). Have them do a "comparative market analysis" for the home in which you're interested. Remember that most agents will do this as a courtesy with no fee involved and it is the best way to determine the "market price" for any potential purchases.
- Take a look at the surrounding area. Are homes typically moving quickly or slowly in the immediate areas? If they're moving slowly - ask yourself why. Sometimes the speed of which a home sells (or doesn't sell) is directly related to conditions around it. For instance, a home that is surrounded by road improvement construction or located near a landfill could have its marketability affected by those circumstances. It is typical to offer "below-market-value" on these homes and most agents will prepare their sellers for this event.
- How long has this home been on the market? Typically, sellers are more motivated to negotiate the longer their home has been up for sale.

I hope this helps address your concerns. If I can help you further, please email or call me. Thank you!

Marian Mercer, Realtor
Southern Homes and Land Real Estate
Marian@southernhomesandland.com
(912) 536-8945

Wed May 14 2008, 07:59