We would like to know how much below the listing price should we offer?

Asked by Rich Ludke, Lexington Park, MD Sat Apr 12, 2008

With the housing market in So. Maryland continueing to decrease in value and high inventory of homes for sale, we feel most listing prices are still high. We are planning to buy a home in July - August time frame.

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4
MaryAnne Cre…, Agent, California, MD
Sun Apr 13, 2008
BEST ANSWER
Rich,
First, you want to know if the home is priced above, at or below market value. You'll need to see all the comps for the last year for the homes that SOLD in that neighborhood and within about 5 miles that are similar (sq. footage, amenities, lot size, etc.). With the current market, listing agents are refusing to allow Sellers to overprice their homes. 90% of the homes currently on the market are priced where they should be. Secondly, determine what your closing costs are going to be and what you'll need to put down. Lender requirements change week to week these days. Sellers are more likely to help you with your closing costs if you don't "lowball" them with the sales price. If your agent did their homework and knows the home you want is priced correctly...offering less than asking price and asking for closing help is a one way road to a rejected offer. The old school method of offering a certain % under the list price is gone.
Make your agent pull the Sold Comps and all the Active Listings to see where your dream house falls out...then you can make a well informed offer and have it accepted. No matter what the market conditions are, people still have to buy and sell homes and the best homes (price, location, schools, etc.) SELL regardless.
2 votes
Alan May, Agent, Evanston, IL
Sat Apr 12, 2008
Daniel, there is no magic percentage, of what percentage off the list price, you should offer. Your offer price should be based on knowing the local market, taking recent sales of comparable properties into account, average days on market and normal market values.

Once you know what your target price is, based on a good market analysis, then you can determine how much you should offer. Hopefully you are working with a good buyer's agent. As a first time homebuyer, you can greatly benefit from a buyer's agent's advice and guidance.
1 vote
Mark Roncone, , Naperville, IL
Sat Apr 12, 2008
It will vary house to house. First you would have to figure out if the asking price is fair. Then you would want to look at what has SOLD that is similar in the same neighborhood. You also could always hire a real estate appraiser.
Web Reference:  http://www.nilhomeseller.com
0 votes
Chris Highla…, Agent, Frederick, MD
Sat Apr 12, 2008
Rich,
Its really a case by case basis. If the house has had several reductions, or if it is already fairly priced, you don't want to insult the seller. (Starts negotiations on a bad foot, if you can get them to negotiate at all:)
Have your agent do a Comparative Market Analysis (CMA) and find out what similar homes have sold for in the last 3 to 6 months. Ask your agent what the trend has been. (for instance, in our area, appraisers are deducting 1% per month right now, it was 1/2% per month last year.) Your agent should be able to guide you to offer a fair price.
0 votes
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