Jennet Sulli…, Home Buyer in Austin, TX

If a home has been on the market for over 100 days and has already lowered it's price around 8k what are the chances of them lowering it another

Asked by Jennet Sullivan, Austin, TX Tue Oct 19, 2010

5k? We're looking at a few houses - so far just browsing (waiting on VA approval) and most of the houses that will fit our life are a bit out of our budget by about 5-10k... but most have also been on the market some time. How flexible are sellers at going down on price nowadays, or are they more willing to try other incentives (such as assisting w/closing) to make a deal? I realize it's always specific to individual sellers, but I was hoping to get an idea of the general consensus.

Thanks!

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Answers

6
Hello Jennet,

As has been said if a home has been on the market for 100 days or more it was overpriced to begin with. This is a difficult market. I have several listings in Cedar Park currently and the amount of traffic has slowed down greatly on all of my listings. Homes are still selling but just not at the pace they were in the summer before the tax credits expired. Even then today's buyers are more price conscious and they want to get a deal or at least know what they are paying is fair.

I would think most, if not all sellers would welcome an offer on a house from a serious buyer. Honestly a $5k difference in the sale price will not make a huge difference in your monthly payment. Many sellers who purchased in the past few years owe more or about what they owe on their homes. In the end that is not your problem but it is something to be aware of.

If you truly like the house and are ready to start the process make an educated offer. Have your agent pull the comps of recently solds and currently listed properties. With this information you will be able to make an educated purchase offer. You may also want to read my blog article on making a purchase offer here on Trulia or my website blog listed below. It goes into further details and things you need to be aware of during and after the purchase offer is made.

I recommend you get together with your agent and compare this home to the other homes and see if it is priced fairly in your eyes. When you make an offer you are starting the dialogue. I am also a mortgage broker and my 30 year rates with lenders I work with are as low as 3.75% on 30 year fixed and even lower for 15 or 20 year options. If rates go up 1/2 point before you end up making a decision that would make your payment the same as buying a house that cost $20,000 or more than the one you are interested in.

Good luck in your home purchase!


Don Groff
Realtor & Mortgage Broker
Keller Williams | 360 Lending Group
512.669.5599
1 vote Thank Flag Link Tue Oct 19, 2010
If the home is a Short Sale (or about to go Short Sale); the chances are certain the price will keep dropping until it is contracted.
0 votes Thank Flag Link Tue Oct 19, 2010
Finish with your VA loan approval, clear any contingencies attached to that approval, and draft your offer on your favorite home. Also, get your loan officer to confirm that you can close this loan in under 30 days. If you draft it up today, that means your seller only has one final house payment to make and they are done with their home. That can help sellers be a little more flexible on pricing. A pre-approved buyer with no contingencies is in demand, and you have market value once you are approved. Some very good homes are getting no showings right now, solely because there isn't a pre-approved buyer for them who is touring right now. Don't be wishy washy and offer a verbal offer. Take the time to draft the most solid offer in terms of price and terms that you can and give it your best shot. The worst they'll say is 'no'. They may just say 'yes'.

Also, there may be a different loan program that works better for you. Do you know, even though my Husband was in the military, we have never used his VA benefit? There was always a better loan program for us at the time we purchased our homes. The VA funding fee usually made the difference (making the VA loan ultimately a little higher). Check out the site below, and know you are using the best loan program for your family.

Have a blessed day!
0 votes Thank Flag Link Tue Oct 19, 2010
yes, it does depend on the individual. However, this is such a crazy market it's like trying to read a crystal ball when you are trying to figure out how a seller will respond. =) I've been doing Real Estate for 13 yrs and if I could do that I would be set! heehee! If they have lowered their price then they are likely pretty motivated (or they have a smart Realtor telling them what to do in this market!). Right now the market is still calling for people to negotiate even past what they have already reduced. It doesn't really matter whether you offer less on price or ask for closing cost, it works out to be the same number for the seller either way. They are usually just concerned with what their bottom line comes out to in the end. If you put your offer on paper and make it official instead of verbal it makes it more solid for the seller and he or she will consider it more seriously. I have been able to get some pretty good deals negotiated lately. Far beyond what I thought someone would give b/c sellers are realizing that if you don't sell by October, there is a very real possibility they wont sell until after the holidays b/c this is our slower time of year. One more thing to consider is that they may have been over priced from the beginning. It is always smart to get your realtor to run the comps for you and base your offer off of those before you submit to the seller. I would love to help if you need some! I was born and raised here and live on the cusp of Cedar Park and Austin. My family still has about 40 acres in Cedar Park and I've watched it grow since I was a kid so I have my optinions about what different neighborhoods are doing. If you would like some assistance please feel free to visit my web site and read some about me. If we decide to work together I always think it's good to make sure your personalities are a match. You don't want to spend 3 or 4 months working with someone who you don't like or doesn't match with your personality. =)

thanks so much!
Chrissy Caputo
New Home Solutions
512-748-4650 cell
512-671-4663 office
chrissyboo@austin.rr.com
http://www.austingolfliving.com
0 votes Thank Flag Link Tue Oct 19, 2010
Hi Jennet,
It's frustrating to be so close but the right homes are just out of reach!

I'm not clear if you are working with a Realtor and that person is taking you to homes you can't afford or if you are doing your own search for a new home. A great Realtor knows the area and can show you homes that fit your needs and your budget.

Most sellers know that they are not going to get full asking price and I have seen sellers do crazy things like rejecting an offer that's within a few thousand of asking price or accepting an offer that's $30,000 below their asking price. If you need closing costs assistance, that can be written into the offer and your Realtor can guide you on how to propose that to the seller. You probably have a better chance of a seller being flexible in pricing on a home that is 100 days old versus 10 days old, but a stagnant house might also belong to a stubborn seller. Every home transaction is different.

I agree with Tom's answers to you below, except for one point...find a qualified Realtor and then do sign a Buyer's Representation agreement with them. It protects both parties and is the only way that the Realtor can represent you and not the seller in the state of Texas.

If you need assistance with your home search, I would love to help you find your new home within your time frame, whether it's next week or next year. I work Cedar Park, Round Rock, Leander, Hutto, Georgetown and the North Austin metro area. Feel free to contact me and we can get started.

Have a great day!
Leigh Hilliard
Realtor, ABR, GRI, TAHS
Private Label Realty
512-922-3965 mobile
Leigh@LeighHilliard.com
0 votes Thank Flag Link Tue Oct 19, 2010
Jennet,

You really need to analyze the prices that homes in the area you are looking have sold for. Looking at days on market, percentage of list price, price per square foot, percentage on county valuation and making adjustments for the quality, features, condition and location will help you determine what a house's value is in todays market. The seller's motivation and financial situation, as well as the inventory levels in your area will also play significant roles in what a seller may end of accepting.

At this point a qualified Realtor® will be a huge asset to you in your search for the perfect home. The right agent will go a long ways towards your success in fully understanding the area around Cedar Park and ensuring you find the right house to meet your needs and negotiating the best pricing and terms. A couple things I would tell you is to NOT sign a buyer's broker agreement with anyone. This is a form an agent will use to tie you up and ensure any transaction you make will only be through them. Find an agent who is happy to perform their services with the knowledge that if they do not properly meet your expectations they will lose your business.

Second, NEVER call a listing agent about a home they have listed as their initial relationship with the seller will prevent you from working out the best deal.

Finally, I would recommend that you interview at least three qualified agents in your area to assist you and select one who you feel will have your best interests as their primary goal. If you would like I can recommend agents in your area and help you along your path to finding the perfect home. It is a great time to buy so please let me know if I can be of any help.


Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Tue Oct 19, 2010
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