Home Buying in Cambridge>Question Details

Iris, Home Buyer in Boston, MA

How much less than asking price it is reasonable to offer?

Asked by Iris, Boston, MA Sun Oct 5, 2008

We are looking to buy basically next year, but we are looking around just in case we see something we like in a great price. We saw a place we liked in east cambridge for 469K, is has some disadvantages but can be great especially if we can get a really good price. How much lower can we offer without being out of line?

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In many ways, you are asking the wrong question. Asking prices are arbitrary. They can come down $150,000 from start to finish of a sale. So, if you got $30,000 off the original price, you overpaid by $120,000.

You need to consider the maket value of the property. That requires some research. You can hire a buyer's agent to do it for you, or you can use the many online services to find properties like the one you want. Once you identify properties like it, see what others have paid for them. Then you know what you "should" pay for it. Negotiate from there and you'll do well for yourself. The link explains this in more detail.
0 votes Thank Flag Link Mon Jan 26, 2009
Ask your agent to run a area market survey for the town and home style you are looking to purchase. This should tell you where most buyers and sellers are meeting in terms of a discount from asking price. There is usually a 3%-7% discount from asking.
It is also important to take into account the time on market for the home. Sellers who have just gone to market will be more firm on their price (whether it is reasonable or not) the shorter the home is on the market. In addition the seller motivation is important a transferee has a different mindset from a retiree.
Consult with your agent and take a shot, Keep the negotiations moveing quickly, and get the home you want!
0 votes Thank Flag Link Fri Oct 10, 2008
Hello Iris- Is Cambridge Suffolk or Middlesex County? I always think its a good idea to do the comps like the other 2 answers mention, but also it might be helpful to see what the current seller owes on the property. You can get very close to that true number via looking at the online registry of deeds and doing a little research on it. It should all be free to do- just takes some time.
If they owe $465K for it still on their mortgage for instance, you likely won't be getting it much lower than that.
But if they only owe $300K on it, then maybe you have a better chance at getting it for a lower price. Just a thought. Thanks, and good luck,
Ken L.
0 votes Thank Flag Link Fri Oct 10, 2008
Look at the area's other properties. If they all seem to be comparable in cost and features, offer at least 10% less than the offer price and negotiate from there. usually you should settle for about 5-7% less than the offer price. obviously, there is no formula or rule but having been both a seller as well as a buyer recently, this is my experience. Do not sign any contract with any buyer's brokers. That is a scam to ensure that you cannot buy any property through any other broker. The only advantage of a broker is to arrange the paperwork, Any broker will do the same work - sellers or buyers. They are both there to make their commission. The higher the sale price, the higher the commission. No one is helping you. Good Luck!!
0 votes Thank Flag Link Wed Oct 8, 2008
There is no set amount ofr percentage to offer on a property. it is easier to see what other properties have sold for so you can bas eyour offer on what is today value. When purchasing a home you really should have a buyer broker to assist you through each step of the buying process and can get the comparable sales listings for you so you know what to offer. In most cases you negotiate a buyer broker contract so that it doesnt cost you anything out of pocket as the listing broker pays the buyer agent through the commission offered in MLS. This way you have someone looking out for you. If you need a referral of someone in this area pleaselet me know. Good luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Oct 5, 2008
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