You can offer as low as you want. But it really has to depend on whether or not the property is a good deal at list price.
If you are with someone that knows the market you can gauge this correctly...
For buyer 1 sees a property they like : Advice make a full price offer.
Buyer 2 sees a property: advice get a 20% discount.
Insider info: Buyer 1 was buying a deal that was already 20% below market value.
Insider info Buyer 2 was buying an overpriced listing that had a recent rash of short sales and foreclosures.
You have to be savvy in todays market.
Hope this helps! Happy Home-Hunting,
You can actually search through all the Condos at
In Hoboken last month, the average discount off the list price of sold properties was only 5%. That indicates to me that you can assume the offers were twice that amount, or 10% lower than list, on average. Nonetheless, in a market with nearly 500 units for sale, you can offer whatever you think the property is worth. No sane buyer would "be offended" or refuse to negotiate with you. You can see the monthly sales statistics for Hoboken at
Prudential Castle Point Realty
NJAR Circle of Excellence 2004, 2006, 2007, 2008
201 993 9500 (cell)
I continue to see properties sell between 1-5% of their list price, when that list price reaches the home's proper "strike price". If the home is priced properly from the get go, it performs in this same 1-5% band. If the home is overpriced, then it sits, and your 10-15% off the top idea just may be appropriate. But it is just as likely on an overpriced home that you will pay too much. Remember a seller can ask whatever they want. The same pricing analysis that I talked about before will immediately flush out overpricing.
Get the facts on your side - talk to your agent and work through the numbers to arrive at a sensible offer price for properties of interest.
Good luck to you!
Search and connect at http://www.feenick.com
It really depends on how well the property is priced against what has sold and also what is currently for sale. I have seen buyers make offers 20+% below asking because the comparables showed that the property was 20+% overpriced. I have seen buyers pay full price in this market because the seller priced their home to sell and the buyer saw that there was value there.
I recommend speaking with your Realtor to guide you on the offer process and educate you on what is currently under contract and sold within the past 3-4 months. Even if you offer 10-20% below market and the seller is offended, your Realtor should be able to back up the offer with data that shows why you made the offer you did, that is if there are comparables to back up your offer. Many times as a Realtor I have to educate not only the buyer but also the listing agent on why my buyer is offering what they are for the home.
Please let me know if you have any additional questions. I'l be happy to assist.
All the best in your home search,
Walter J. Burns
1 Newark St.
Hoboken, NJ 07030
201-653-8488 Ext: 230