how much more should i offer for best and highest offer.........i offer 47,000 on 51,000 condo,how much more should i offer

Asked by ddetroitm4, Detroit, MI Tue Jan 10, 2012

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Mallorie Wil…, Agent, Indianapolis, IN
Thu Apr 25, 2013
Honestly, with highest and best, it's just that. You want to offer the highest you're willing to pay. A lot of times, the highest and best exceeds list price. At the end of the day, offer what you feel most comfortable.

Best of luck.

Mallorie Wilson
Associate Broker
Century 21 Diversified
0 votes
Christopher…, Agent, Tarrytown, NY
Mon Jan 16, 2012
Hi, This all depends on what the current values are in the area. Once you figure this information out you can then decide if you feel the value is there to bid asking, more, or less. It will also depend on how many other competing bids there are at the moment. I always say, if you feel the value is there, the sold comps point to it being a great value, and you love it...then go as strong as you like.

Chris
0 votes
Allison Fish…, Agent, Ann Arbor, MI
Mon Jan 16, 2012
If you are working with an agent they should be able to advise you as to what other homes have sold for that are similar to the home you are looking at, and weather it is worth what they are asking. With that said you really have to ask yourself how bad do you want the property? I would also make the offer contingent on an appraisal of the property so as not to pay more then it is worth.
0 votes
Haig Istambo…, Agent, Rochester, MI
Tue Jan 10, 2012
Hello,

I know a few people have answered all ready but wanted to offer another opinion. Obviously I don't know the specifics of your particular condo. But I can guess and say this condo most likely sold for more than double about five years ago or less. If this condo is a foreclosure, then most likely the bank is looking for a very close to asking price offer, since the price all ready reflects what similar condos are selling for on the market.

The difference from your offer to a full price offer is $4,000. The average person stays in their home for about five years. So $4,000 over five years is about $67.00 a month or a little of $2.00 a day. So ask your self, for $2.00 a day can I live with myself NOT having the highest offer on this place.Can you see another family living there for a little over $2 a day? If you can then wait for the next one, if there is one.

My experience with most of the clients I have worked with the past two years, is this; the first offer placed is more than 10% under asking price, against my suggestions ("because banks are desperate and they will take my offer"). The second offer they place is about 5% under asking price because they feel "that is a good offer".

By the third offer (or more) they are asking my opinion and taking it (finally) and are offering at least $100 over asking price (or in some cases of an outstanding house well over 15% over asking price because "they are tired of being outbid on houses".)

Inventory is limited right now, what the future holds, no one knows for sure. Every good property WILL have multiple offers and many of them will be well OVER asking price. Prices have taken a major reduction ALL READY the past few years, so please don't think you can reduce it even more just because.

My opinion? If it is a nice condo and you can see living in it for at least 5 years, I would offer $51,500 to secure it, if you can afford it.

Let me know if you want me to give you an opinion based on the comps, email me with the property address, I will keep the opinion based on the comps between you and I.

Thanks and good luck with your deal,

Sincerely,

HAIG
Elias Realty
(248) 379-6547
realtorhaig@aol.com
0 votes
Brian Wayman, Agent, Indianapolis, IN
Tue Jan 10, 2012
Yes, obviously it is going to depend on the circumstances but typically I'm not a big fan of getting my buyers in a bidding war. It depends on how bad you want the home/condo. I always tell my clients to put your best foot forward and bid a number you feel comfortable with, one that if you don't win the home you will have no regrets. Make a decision and stick with it. Never play the coulda shoulda game!
0 votes
Joe Bertera, Agent, Plymouth, MI
Tue Jan 10, 2012
Depends on the details and area of the condo, including recent sold condos. Right now in the Detroit market inventory of quality homes and condos is actually low, so in many cases foreclosure highest and best situations go over asking price. Could also depend if cash or financed offer. You agent should be able to pull up recent comparable sales to determine the best course of action. If you need further assistance please feel free to contact me. My email is joebertera@gmail.com
Web Reference:  http://www.joebertera.com
0 votes
Mike Toomey, Agent, Plymouth, MI
Tue Jan 10, 2012
Your agent should be able to look up comps in the area of similar homes that have sold recently. This will give you a good idea of what the home is worth.

There are other factors to consider, like the terms of your offer. Is it a cash offer or mortgage? If you’re taking a mortgage, what is the type of mortgage (FHA or conventional), amount of down payment, etc.

The fact that there are multiple offers on this home usually means it's listed at a pretty low price compared to what it's worth. Whenever you're competing with other offers, the best way to approach it is this...Ask yourself how much are you willing to pay for this house, instead of what is the best price you can get this house for. I hope this helps. Good luck!

Mike Toomey, Realtor
Remerica Hometown One
734-414-0331
mike@miketoomeyhomes.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Jan 10, 2012
What is your agent advising...do review comps beforehand, recently sold similar properties in the immediate area, see what the data suggests as to a fair offer and go from there--stay within your means as a property is worth what someone is willing to pay.
0 votes
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