how much less do buyers offer off the listing price?

Asked by John Martin, Cincinnati, OH Wed Nov 10, 2010

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Kelly Gibbs, Agent, Cincinnati, OH
Wed Nov 10, 2010
John,
By pulling up recent sales in the area that were similar in style, size, #bedrooms/bathrooms, etc, you can decide on a price range. Digging a little deeper into these comparables, you look at their condition, improvements, seller conditions, and of course the current market condition. You want to also compare list to sales price ratios for the past 3-6 months in that area to determine if homes are selling over, under, or at list price. Take resale value into consideration and consider items other than price, such as seller credit toward closing costs, repairs and warranties. Ask yourself what's the most you would pay? Then decide on the top price you are willing to pay, and plan to offer less than that amount to leave yourself room to negotiate. You can always increase your offer and with being in a buyers market currently it will also allow for more bargaining room on more than just price.
0 votes
Frank Dolski, Agent, Lahaska, PA
Wed Nov 10, 2010
John,
There are many circumstances, stats, and personal stragegy that comes in to place when buyers place a bid. The best way that I can explain it is that there are certain discount rates in specific areas and subdivisions. After that, a buyer will make their decision based on location, amenites, etc. Anyone can bid anything but the truth is, they must be realistic!

Hope this helps!

Frank Dolski
Associate Broker
Coldwell Banker Hearthside Realtors
Web Reference:  http://www.FrankDolski.com
0 votes
J R, , New York, NY
Wed Nov 10, 2010
In my experience, buyers usually offer close to what the home is worth compared to other similar homes. IOW, if it is priced right, I've sold for full price in a few days. If it is priced high, I've gotten 3 or 4 offers considerably below asking, but all in the same range, and usually what the home ultimately sells for.
0 votes
Rainey Delot…, , Cincinnati, OH
Wed Nov 10, 2010
John,
There are many variables that impact what kind of offer a buyer should make that I don't believe there is a blanket answer in regard to a percentage of list price.
When I represent buyers who identify a property upon which they'd like to make an offer, I research the following and provide them with the answers:
1) How long has the home been on the market?
2) During the time it's been on the market, has the seller reduced the asking price?
3) If so, when were the reductions done and how much has the property been reduced from its opening price?
4) What did the seller pay for the property and when was it purchased?
5) If possible to ascertain, an idea of what outstanding mortgages are against the property and does the owner have the resources to pay off mortgages, pay commissions, closing costs etc? Many times, this can be resolved with a conversation with the listing agent prior to writing an offer. If the seller is upside down" and owes more than the home is worth, this may be a home you might not want to waste your time considering.
6) Run a statistical analysis of list/sale ratios in a particular neighborhood to give you an idea of whether homes in that area are selling for 89% or 93%, etc of list.
6) Lastly, for what price have comparable properties in the past six months sold.
If you and the agent representing you do your "homework" you should be able to target what a seller will see as a reasonable offer and one they will consider accepting.
Regards,
Rainey DeLotell
RE/MAX Affiliates
Web Reference:  http://www.homesforpros.com
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Dan Tabit, Agent, Issaquah, WA
Wed Nov 10, 2010
John,
As Jim said, there is no set amount. Homes, unlike cars don't have a "blue book" value. One seller sets a high list price hoping for offers, another is realistic about their home and sets a realistic price and gets offers. External measures like assessed values, Zillow.com or Eappraisal.com are interesting tools, but completely unreliable to make such an important decision on, and they admit it.
An experienced agent, knowledgeable in the local market can prepare a Comparable Market Analysis considering recently sold homes of similar size, style and finishes. Based on this data you can decide if the list price is realistic, optimistic or a steal. Make your offer based on the best information available and have an experienced knowledgeable agent negotiate it on your behalf. Best of luck in your purchase.
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Jackie Patri…, Agent, West Chester, OH
Wed Nov 10, 2010
Hi John,

There is no set amount that sellers give you off the price of a home. Hopefully, we could talk them down some. If you have a specific home in mind, I can tell you what similar homes in the neighborhood have sold for. We would need to look at the home you are interested in and together, we could see what it's worth to you. Call me anytime. 513-476-0848
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