Asking price vs Selling price. Should I offer 20% asking price?

Asked by Fred, California Fri Nov 2, 2007

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Dan Tabit’s answer
Dan Tabit, Agent, Issaquah, WA
Tue May 10, 2011
Fred,
What if the property is overpriced by 25%? I agree with my colleagues that there is no standard discount because there is no standard price. We don't have a blue book that tells us what a home is worth, we have our own interpretations of a market analysis and the seller’s motivation.
Have your agent complete a detailed comparative market analysis and see if it's overpriced or underpriced. How badly do you want this home, would you be upset if another buyer showed up and offered more? Make an offer based on the CMA and your level of interest in the home. Best of luck; let us know how it turns out.
1 vote
Patti Pereyra, , Chicago, IL
Fri Nov 2, 2007
Applying a standard percentage reduction to any offer is not the most strategic way to make an offer. You might get lucky, but if you really want the property, I wouldn't rely on luck.

Study the comps carefully to formulate a fair offer. Then determine your best and highest offer based on the comps vs. the actual property, and make an offer below that so there is room for negotiation.

If you want to attempt to stay as below as possible from your best and highest price, be sure to structure your offer so that it is as attractive as possible: few or easily removed contingencies, nice down payment, preapproval letter, solid earnest money, and quick close.

Good luck.
1 vote
Scott Hulen, , 64068
Tue May 10, 2011
It really depends on the property and your goals. Some are priced right from the start others are not. Example 340,000 asking price in a 400,000 area, mess around and play games and may lose this good deal. A property listed for 540,000 in the same 400,000 area offer 20% off and you still over paid by 32,000. A great full time agent can help you sort things out. My advice when you find the right deal jump on it and go after it even though there are many REO's out there it is very competitive. In my area there is some upward price presure at certain price points.
0 votes
Brad Bergami…, Agent, Prescott, AZ
Tue May 10, 2011
Fred,
The only thing I can add is make sure your Real Estate agent is a good negotiator. Also set a strategy for an end price that is acceptable to you. If you want the home at your price, you will have to play the game. Realtors that have lot of business tend to good at negotiation, find one and go for it
Web Reference:  http://bradbergamini.com
0 votes
Bill Snyder, , Yuma County, CO
Wed Nov 14, 2007
LOOK AT THE BEST PRICE IN THE NEIGHBORHOOD YOU LIKE AND PUT A LOW BALL OFFER ON IT ! 20 % OR MORE IS A REASONABLE OFFER , THEY CAN ALWAYS COUNTER IF THEY DON'T LIKE OR JUST SAY NO ! IF YOU NEED A BUYERS AGENT CONTACT ME FOR A REFFERAL .
0 votes
Perry Hender…, Agent, Austin, TX
Fri Nov 2, 2007
I just got 3 deals by calling 10 high producing agents I know in the area and said the following...

"I have a buyer that did 30 million with me last year. he only buys peoperties between 10-20% off list price. Would any of your seller consider a discounted sales offer?" One of those 10 had 1 seller willing to take that offer and we bought 3 from that seller.

It works but it helps asking people to help you find a willing seller first.
0 votes
Linette Carr…, Agent, Wilmington, DE
Fri Nov 2, 2007
I disagree. Each property has to be evaluated for its condition, location, and asking price. If a property is overpriced compared to what has sold to date, sure go ahead. But if it is your perfect home and it is in great shape, a great location and priced competitively, you are probably wasting your time. That said, if you feel you have nothing to lose, ask your realtor to make the offer anyway and see where you end up.
0 votes
Brett Dunne -…, Agent, Upland, CA
Fri Nov 2, 2007
Fred:

Ed's answer is correct.. And let me add that if you are a buyer with some money, great credit, loan approved and do not have a proeprty to sell in order to buy....do the 20% off.
0 votes
#1, , San Francisco Bay Area
Fri Nov 2, 2007
It can't hurt. If you don't ask... you don't get. Worst thing the seller can say is NO.
0 votes
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