Rob Lance, Home Buyer in Santa Monica, CA

Is it fair to offer 20% less than asking price for $1,000,000 home in a nice section of Westchester? Is it?

Asked by Rob Lance, Santa Monica, CA Sun Mar 9, 2008

too early? Will prices drop another 15-20% by summer? Will the Mar Vista section also see a decline?

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You can offer whatever you want. If you can get it for 20% less than what it's listed for, you probably won't have to worry about home values dropping.
1 vote Thank Flag Link Mon Mar 10, 2008
Hi Rob, You can offer anything you want. I specialize in Westchester and this neighborhood always has strong demand, so you likely won't get a million dollar home for under $800,000. However, it could be over priced, or you may have a homeowner who's at a point where he's willing to negotiate, A good agent will uncover all the specifics for you so you have a strong negotiating position.

Good luck.
0 votes Thank Flag Link Wed May 4, 2011
Prices are generally flexible 5-10% but it's harder to find a seller who would seriously consider an offer for 20% less unless:
1. They are very motivated to sell
2. They know that the home is overpriced and maybe have not gotten around to doing a price reduction
3. The stronger you can make your offer the more negotiable some sellers are

Prices should go down some more thru the end of this year but it's too early to tell what will happen next year. Depends on what happens with the economy, housing inventory locally, interest rates, unemployment, the stock market and more.
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0 votes Thank Flag Link Mon Sep 27, 2010
The best sections of Westchester (like Kentwood, for example) are trending up in price, with multiple offers and bidding wars. Your better bet might be to purchase a fixer on a really great street. That's where you'll make the most bang for your buck if you are willing to do some work.

A trusted real estate agent can also help you identify the best buys and possibly which homes are overpriced and due for a price reduction. It's all about comps, Seller motivation and evaluating a home's worth so you maximize your investment dollar and efforts. Good luck in your search!
0 votes Thank Flag Link Sun Feb 28, 2010
While no one knows for sure where our market is headed, I would say...go for it. Purchasing is about negotiation, so if you want to throw an offer at him and see what their response is, why not? With all of the uncertainty out there you never know what a Seller's motivation is, and you might just be able to snag a property. However, if it is a home that you are in love with and would hate to see get a way, I might be a little less agressive with your low-ball offers. If you're just looking to snag a great deal, go for it.

As for the rates of decline by the summer, I don't think a 15-20% decline in that area is realistic. While prices may continue to re-adjust, I'm not sure they will fall that quickly. What may happen by that time, though, is that interest rates will have risen, so you might want to think about getting locked into a loan before that happens. Rates are inching upwards, so definitely do your homework and ivestigage what your options are. Good luck!

Broker, Coldwell Banker Beverly Hills
0 votes Thank Flag Link Thu Mar 13, 2008
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