What amount to bid for on homes with the market in bad shape in our area???

Asked by Doug, Meadville, PA Fri Apr 2, 2010

With the housing market hurting in this area/time what amount of discount can a buyer really ask for. I know that it is really up to the seller... Example ;; we are looking at a 130k home..Would a bid of 120k be laughed at??? Just wondering if we should stat the bid lower or higher.. Also when should a buyer ask for money back towards the closing cost...thanks

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Ron Thomas, Agent, Fresno, CA
Thu Nov 8, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.

ps. I think you will find that most LISTING PRICES now include allowances for repairs; but you cannot count on that.
1 vote
Christine Br…, Agent, Meadville, PA
Thu Nov 8, 2012
Asking for sellers assist is a common practice any more. I would talk to your agent and see how he feels about offering $10,000 less, he or she may know that it was under priced as to get multiple offers. The amount of time it has been on the market, how the homes are selling in the area and how close it was priced to the current market value is all things your agent can help guide you with this. Usually it is fine to offer that, but don't want you to lose the home if the other factors say different.
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Fri Apr 2, 2010
I do not think a bid of $120K should be laughed at in any market, but the response will be up to the seller. I remind my sellers, it is not where you start, but where you finish that matters. Regardless an offer that is within that margin of asking is respectable at its face. You need a good local agent so if you don't have one, get one to guide your way and help you negotiate to a successful outcome.

I wanted to write primarily to say hello - I am a Western PA gal, having grown up in Oil City, PA, you guys always killed us in football, probably in every sport, as I recall you were the Bulldogs?

Good luck, get that agent working....

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Apr 2, 2010
Doug you can not use the listing price to base your offer on, you need to assess what the property is worth in todays market, a good buyer broker will performa a broker price opinion for you. Base your offer on market value as you dont know if the asking price is at market value, already way below market value or above market value. Using this will assist you in getting a better deal than basing your offer on someone elses asking price. good luck with your purchase.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Meadville Zip Codes

Email me when…

Learn more