What is your offer based on? Recent sold comps or real facts or just want you can afford? Its unrealistic that a seller will accept an offer based on what you can afford without true local market real estate facts to support your offer. It may open up negotations and be a starting point for negotiations. In addition if the house is a short sale or foreclosure there are other factors to be considered or perhaps the home is paid off and the sellers are looking to get rid of it quickly. Obviously not knowing all the facts about the listing, etc. I cannot or can anyone else answer what the seller is willing to accept but if you want to write up the offer than your agent must present it and the listing agent must present it to the sellers. You can see where it goes from there.
Gina Chirico, Sales Associate
Prudential NJ Properties
973-992-6363 ext 116 office
No Guessing here, You can make an offer and see their counter offer.
You should contact a realtor and he or she will guide you with the offer.
Are comparable properties in the same area selling at that price or did you just pull that number out of thin air?
If the actual market value of the house is in that general range I would say make the offer, if not and you expect to negotiate further with the seller, I wouldn't start super low and expect the seller to meet you in the middle. That tactic only tends to aggravate the seller and builds ill will toward any future offers you make.
Home sale negotiations don't work that way, flea market negotiations do!
Using flea market tactics to buy a home will only insult a seller to the point they will give much resistance to accepting any future offer "You" make.
I've seen it over and over first hand and it usually backfires on the buyer causing them to end up paying more than the seller would normally settle for if their first offer was a serious one even if a little low. I have a seller now that is dealing with a buyer like this and said I'd rather burn the house down then give it to him.
These 20-30% below asking price offers are ridiculous when coming from people that don't bother to check what the comps are selling for.
I think people hear property values have fallen x% since the peak of the market in 2006 and then come in several years later and want to offer that same % off the current asking price. Realtors need to educate their clients better and the ones that don't want to listen will waste a lot of your time showing homes just to make silly offers that have no chance of being accepted.
Short sales may be your exception but you may wait 10 months later just to find out the bank doesn't want to accept your offer either because it is much lower than the market will bare.
Real Estate always sells at Market Value!
Market Value does not = What people are offering, it is what comparable homes have actually sold for recently.
But there is no reason not to try - the worst thing that can happen will be that the seller says "no". You can brush that off and either try again or move on. But one thing is for sure, an offer that you can substantiate is far more likely to kick off a successful negotiation leading to acceptance than a number pulled out of the sky.
An agent can assist you with a price trend analysis which will recommend an offer price range based on the facts of the market - it will immediately flush out overpricing - and is a powerful tool to guide the bidding process.
I'm familiar with the inventory and very comfortable with the analytics - if I can be of assistance, please do not hesitate to reach out to me.
Search and connect at http://www.feenick.com
Considering Gina's input, I would also add that if you are truly serious about this property, an offer that is approximately 29% less than list price would most certainly insult a seller and you risk the seller being unwilling to work with you in the future (and trust me, even in this market, an insulted seller will shut the door on a buyer even if they begin to wave cash in their face - go figure!).
While I advocate that "an offer is a sign of interest and no offers is actually an insult", if this property is priced accordingly, I'd advise against it.
Love and Peace