Is 90% of the lsiting offer an acceptable first offer or final offer?

Asked by S, West, TX Fri Nov 23, 2007

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4
Deborah Madey, Agent, Brick, NJ
Wed Nov 28, 2007
HI S,

I just responded to your other question on a request for best and final offer.

Depending upon the asking price, market conditions, how well the property meets the needs of the buyer, and buyers’ motivation, 90% may be perfectly good offer. If there are other properties which might equally meet your needs and provide a better value proposition for you, then do not hesitate to walk away.

Even in today’s market, paying 105% of asking price to a highly motivated seller who placed a very low ask price, could represent the best value proposition. Don’t let the % skew your decisions. Let comps, market conditions, and personal value to you and yours guide you.

i.e. Assume an original ask price of 500K, and a seller reduced the ask to 400K. Would it have been better to pay 80% of the original ask? Of 100% of the revised offer price? What if, on this same property, the seller originally went to market with the 400K ask? Would a buyer be making a mistake because they paid 400K?

If you lose the property to another buyer without adjusting your offer at 90%, are you OK with that? Is that your walk away number? If so, then stand on your offer as is. If you would regret losing the property if you stood firm, then consider a revision to your offer.

Best of luck to you.

Regards
Deborah
2 votes
Lorie Gould, Agent, Duluth, GA
Fri Nov 23, 2007
The answer could be yes to both. The recent sold comparables and current pending contracts that are comparable to the home in question should tell you what you should offer and what the final sales price should be. Do you have an agent assisting you with making your offer and negotiating the best deal? In a strong buyers market where the market is still correcting then you would want to purchase a little below the last comparable so that you are better protected on your investment.

A local agent can better advise you on your current market conditions. We do have an adundance of listings nationwide; however, when you dig deep you realize that there are only handfuls of great listings. A great listing is a listing that shows great because of it great condition, great location, and great price in the market. In this case, 10% off might not be warranted. As a matter of fact, multiple offers are still happening on great listings.
2 votes
Carole Cohen, Agent, Cleveland, OH
Fri Nov 23, 2007
I always tell my sellers that an offer represents the needs of a buyer who is making the offer and that we have someone who likes their home and wants to buy it. The second part to the answer is that each home is different and 90 percent could be a perfectly fine offer
0 votes
Rob Goodwin,…, , Easton, MA
Fri Nov 23, 2007
Dear S:

Rule of thumb, first offer 90%, expect to pay 95%.

Regards,

Rob
Web Reference:  http://RobertDGoodwin.com
0 votes
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