Home Buying in San Antonio>Question Details

Paul, Home Buyer in

What percentage below asking price is reasonable in San Antonio?

Asked by Paul, Wed Apr 16, 2008

single family home around 2500 sqf; 4 bds, 2.5 baths. Northeast School district

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7
The price is only one variable and the statistics that measure them are flawed. For example there may be seller concessions that actually would make the price lower but will not show up on the statistics. The other variables are dependent on who pays for what. You might get a lower price and find out you actually spent more if you ended up with no concessions, paid for title, paid for the survey, didn't get a home service contract and other variables. At the end of the day the home has a certaing market value today that may be different tomorrow. You should have your agent do a good Market Analysis and show you the value of the homes in the area. One technique is to try to stay within that range of the high and low values of the CMA. If the home is overpriced based on the market value then offer market value. If the home is underpiced based on market vaule then I would recommend bidding on it and doing a good due dilligence with home inspections, Wood destroying insect inspections, Foundation inspection, Find out the history of the home by talking to people to see if it ever flooded or had other problems. Also scrutinize the sellers disclosure and look for any red flags to the property. The bottom line is a home is not a car, it is a home. You can't think of the asking price as a sticker price to be negotiated. At the end of the day you want to buy a home at a fair market value and the seller should expect to get a fair market offer. I have seen sellers who have refused to answer or respond to offers from a specific buyer because they had made a low ball offer and the seller felt personally insulted on more than one occasion.
1 vote Thank Flag Link Tue Apr 29, 2008
You have received some good answers. Unfortunately, your question assumes a general rule that does not exist. Keep in mind that statistical measures are useful only to measure general trends. Each price negotiation is as unique as the property, and the personalities and motivations of the parties involved.

Your interests will be served best if you have buyer representation, and the agent representing you is familiar with the negotiating process.
1 vote Thank Flag Link Sun Apr 20, 2008
For all the reasons in the previous answers, negotiating based on percent of list price is never a good idea. If you're just trying to take an educated guess at what list price you qualify loan wise, the figure can be used, but be aware that roughly half the homes sold had larger ratios and half were smaller!

January through April 16 data in MLS reflects an average of 96.1% sold price to list price ratio for single family homes (ie 3.9% below asking price). For condos its 94.12% (ie 5.88% below asking price).

Your best bet for negotiating is to form a strategy with input from your real estate agent for the particular home you are interested in.
Web Reference: http://JimRooks.com
1 vote Thank Flag Link Wed Apr 16, 2008
It always depends on the property, your circumstances, and the sellers circumstances. Your realtor can guide you with an appropriate bid. If the home is overpriced then you might be very agressive with a bid. If it is underpriced, will attract lots of bidders, it's the only house you like and you've given notice where you are now, then you might bid higher than asking price. Avg list to sales price in my main market area is 97%, but that's only an average.
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Wed Apr 16, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Great Question Paul! I'm sure all of us Realtors get this one on a regular basis. I like your answer Mark and a lot of the other answers. Some great advice.

Paul, ask your Realtor to find out what the history is on the home. When did it come on the market? What did it sell for on the last go around? How many offers have the sellers had? Are there any offers on the table now? The more information you have, the better decision you will make.

The question you need to ask yourself - How much will this cost me if I do not buy this home now? See my blog at: http://www.ronmersinger.blogspot.com/
Web Reference: http://www.homeron.com
0 votes Thank Flag Link Thu May 8, 2008
"Reasonable" is up to the seller. Why do you ask? Do you want to feel like you are "getting a deal"? Do you want to make sure you are not getting the short end of the stick? A few more pieces of information are needed to give you an adequate response. How long has the home been on the market? What are the sellers motivations? There are questions that your realtor should have the answer to. You are using a Realtor right?
0 votes Thank Flag Link Wed Apr 16, 2008
Real estate agent should be able to assist you in answering this question. However I would not try to low ball offers you can cut off communications with the seller where in some instances I have seen the seller refused to sell the property to the buyer due to continual low ball offers.

Keep in mind that the seller does not walk off with the total amount on the executed agreement for agreed purchase price. The seller stills needs to pay for real estate taxes, insurance, realtors fees, closing costs and etc.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Apr 16, 2008
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