Hi Mary, this question is asked frequently - having a % to apply as a rule of thumb may cause you to misinterpret value and miss good opportunities. Fact is this, across communities, homes generally sell between 0 and 5% of their asking price when it hits its strike price. Smart agents advise their sellers to price correctly right out of the gate, and smart sellers listen to them. Those homes sell fast, and for more than homes that are overpriced an limp their way down to their strike price.
Just today in gathering some info for a buyer I'm working with in Basking Ridge, I noticed several new listings in the $700 - $1,000K price range that sold very fast, within days of listing. Were these homes underpriced - no way. And the buyers of these homes rightly recognized a good value and jumped on them. The outcome a fair market deal for both seller and buyer - and those are the deals that make it to the closing table.
So back to your search, let's say that the home you are looking at for $1,000K is priced very well then the 10-20% strategy will cause you to miss the opportunity. On the flip side, if the home is overpriced at $1,000K then the 10-20% discount may not be enough.
So what you need is the service of an excellent agent who understands and can apply the analytics, knows her/his inventory cold and can put her/his knowledge and negotiating power to work for you.
Good luck finding that agent - you've come to a great place to begin that search. If your home hunting shifts to Somerset, Morris and/or Union counties, please contact me.
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