I get this question all the time from Buyers, "What percentage below the asking price is usual for an offer?" My answer to this is simple: There is no such things as "usual" and every situation is different. If a Seller is not motivated and has unrealistic expectations, their house might be priced well over market value and an offer that is considerably less than the list price would be warranted. It will be more difficult to negotiate this and the Buyer's agent willl have to educate the Seller as to why this is a good offer with the recent sales data, etc.

On the flip side, a smart, motivated Seller might price their property so that Buyers perceive value. In a case like this, an offer that is equal to (or maybe even over!) the list price would be realistic. Yes, even in a depreciating market, there are homes selling for above the asking price!

So, each situation has to be looked at individually, and decisions have to be made based upon the current market conditions and recent sales data.

Essie I am in a situation where someone wants to put in a $500,000 on a listing in Manalapan that I believe is priced on the money around 549,000. I've pulled comparables and told them the house is priced on the money with the fact that the home needs work already reflected in the price...still they want to feel they are stealing a home from someone. I am encountering this issue time and time again....I think it is just the market we are in along with the media!!

Right on Marc - these questions come up so often from buyers. We do ourselves and the market a collective disservice to even suggest that there is a going percentage. Certainly I've encountered the 20% regardless of how the home is priced. This may make great sense if the home is overpriced, but makes no sense if the home is priced properly.

A good pricing analysis is the right tool to employ in working with sellers in setting pricing, and buyers in guiding bids. A properly priced home continues to sell within 1-5% of its asking price when that price is deemed to be a fair one, call that it's strike price. The sellers that price right from the get go consistently sell faster and for more money than those that chase the market.

So the quick answer is "no" there is no right % - the answer is to do your homework so that you and your buyer can recognize bargains and price any home appropriately.

Best,
Jeanne Feenick
Search and connect at http://www.feenick.com

50 percent under asking might be too high on one property, while 10% below might be too low on another. It really depends on the relation of the list price to reality and the motivation of the seller. One of the reasons we have value to the consumer as professional agents is we can answer that question precisely for each individual property after a thorough analysis and interviews with the principals.

-Marc

Marc Paolella
Relocation Director
Member, Worldwide ERC
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
web: http://www.marcpaolella.com

I would take into consideration the comps, the condition of the house compared to the rest of the market, and how long the house has been listed. Assuming the house is fairly priced according to its condition and the comparable properties on the market, I would not feel comfortable going more than 10% below asking.