For my recommendation - under 30 days on the market - no more than 5-6% of the CMA low end price
30-60 days on the market - no more than 6-7.5% of the CMA low end price
60+ days on the market - no more than 10-15% of the Original List Price
Keep in mind the price reductions the sellers have done and also put yourself in the sellers shoes for a second also to give you an idea of the sellers feelings. Also keep in mind the sellers have a lot in closing costs to pay. Hope this helps you out.
Each seller will make his or her decisions independently. It certainly is more common for sellers to cut prices and offer concessions. There are still some sellers who simply are only willing to sell if and when it fits their price and terms. There is not a blanket motivation level that applies to all sellers.
Look at comps, market trends, current inventory, absorption rates, average list/sell ratios (be careful here becaue it is not always what it initially seems), and how does the property of interst stack up? A motivated seller may have priced under market. In today's market, a buyer could pay over list and still be getting a fantastic deal if the seller priced under market to sell fast.
Mortgage companies may pay closer attention to concessions, particularly on lower down payments. The property must still appraise. If a mortgage company, via appraisal, sees the value at the offer price less the concessions of closing costs paid, etc., the underwriter will factor that into the approval process.
How much anything is worth really depends on the price, the goods, and the supply and demand of the goods. This is the same for houses.
Since you did not give us much detail about the specific property you are talking about; it will really be difficult to tell you the strategy.
If you have not already done so, please ask your Realtor to do a comp for you (although any good realtor would have already done that) for the house you are interested in. Is the house priced comparable to the houses on the comp? When were the houses on the comp sold? How long has the house been on the market? Anything special about the house to make it more desirable than others? Anybody else that's interested in the house? In general, sellers are more open to help the buyers with certain things, but it also depends on the offer you are making. Will the offer be on or near the asking price?
What's important to the seller? The bottom line? The close date? As Is Sale?
So, as you can see, there are many variables in this question; and no, there is really no average amount. Your Realtor should be able to give you a more educated answer.
Since you are both a buyer and seller, I think you will be able to objectively look at both sides and decide what is the best to do.
As for concessions, it really depends on the offer, it depends on how serious your terms are and it depends on the amount of concessions. There are Fannie Mae and FHA guidelines that are pretty straight forward about what's allowed when it comes to seller contributions and not abiding by those guidelines is mortgage fraud, a felony.
If you are willing to pay full price for a property and ask for 3 to 6% seller contributions, your contract and pre-approval better be strong, since the mortgage industry is going through a rough time.
Take a look at this article to get an idea and good luck.
Your Agent will review the recent sales with you - you'll see what similar homes have sold for.
It all comes down to: What do YOU think it's worth?
In a case where you find a home that is EXACTLY what you want, you'd be smart to go a little higher to seal the deal.
Have your realtor pull a CMA for you this will give a snap shot of the market for this home. Then view the home and see what improvements need to be made. Thee home should be priced top 1/3 in price & Condition againts it's competition. You then make adjustments to your offer price taking this into consideration. Quote other properties, market stats and showing pictuyres of other homes makes your offer more credible and the cahnces of success higher.
How much below list is up to your Realtor.
You have to remember two things. People can only sell what they have, If they have equity they can sell their home, or it`s ashort sale, lets not go there.
If you come in 10% below their asking price it only make sense for them to lower their price 5% and offer the home to all the potential buyers out their.
Sellers will offer incentives, again it is up to the negotiation skills of your Realtor.