How much can i negotiate down (Monterey, Marina: credit, relocate, real estate)

[california_is_superior]

im currently looking at a couple of houses that range from the high 600's to the mid 800's. All the houses that im looking at have been in the market for sometime and have yet to get any buyers. How much can i negotiate down on these houses is 100k a possibility ?

[Roma]

Yes you can. Anything is possible.

Besides the obvious "offer a lower price when you make an offer".

I want you to find out when or how long ago these sellers bought their home. If they bought their home before or around 2001, most likely they are making over 2 times and probably pretty close to 3 times the dollar amount or even more, on what they paid for it.

If you find out that they bought it around or before 2001, you have a much better chance at bargaining with them. Because...they will still make a huge profit even with the $100,000 less in the asking price. See, they still win and you win. So it's all good.

Good luck! I hope you can get a great deal!

[Ultrarunner]

As Roma said, "Anything is negotiable" and this especially applies to Real Estate. If you are a strong buyer... meaning that you are able to make a non-contingent offer... I would say you have an excellent chance.

Being non-contingent basically means that you are ready and able to perform and the only real question is agreement on price. I have made some very good buys only because I was willing to buy as-is and close quickly.

My best buy was from a seller trying to settle an estate. The administrator had been tied-up in two escrows where the buyers were unable to close. My Agent suggested I take a look and I said the home is out of my price range. My Agent had to convince my to make an offer for what the property was worth to "Me"... She called back in 24 hours and said congratulations on your new home!

I later spoke to the Administrator who was very happy to have the home sold. The proceeds were being divided 7 ways and he was under pressure to get the heirs their money.

[Jedi5]

Originally Posted by Roma

Yes you can. Anything is possible.


I want you to find out when or how long ago these sellers bought their home. If they bought their home before or around 2001, most likely they are making over 2 times and probably pretty close to 3 times the dollar amount or even more, on what they paid for it.

If you find out that they bought it around or before 2001, you have a much better chance at bargaining with them. Because...they will still make a huge profit even with the $100,000 less in the asking price. See, they still win and you win. So it's all good.

Excellent question. I've been thinking this exact samething for some time now.
I'm sure there are many sites out there that will help you out in finding the sale history of the house. If you haven't found one yet, try SDLookUp. Plug in the MLS number and your house will show up.

Roma- In your opinion, will is still be able to get a deal on houses bought/built after 2001? I'm looking at newer homes.

Thanks

[Roma]

Originally Posted by Jedi5

Excellent question. I've been thinking this exact samething for some time now.
I'm sure there are many sites out there that will help you out in finding the sale history of the house. If you haven't found one yet, try SDLookUp. Plug in the MLS number and your house will show up.

Roma- In your opinion, will is still be able to get a deal on houses bought/built after 2001? I'm looking at newer homes.

Thanks

Thanks for the great link!

Yes, I think you can get a deal on newer homes too. My 2001 is a rough estimate. Even 2002 and 2003 prices were "considerably" lower then they are today.

I like to know as much as I can about the home before I make an offer. That way, I have a pretty good idea (not guarantee) but and idea on who and what I am dealing with. Knowledge is power when negotiating.

Each home will vary: Who owns that home? How long have they owned it? Why are they selling? How desperate are they to sell (did they lose a job or do they need to relocate or can they afford to just sit on the home until they get the offer they want)? What are, if any, the issues (faults, like repairs that need to be done) with the home?

Also what is the "LOCATION" of the home? Is it in an area that the market has taken a down turn or is it in a location where homes are holding or still going up?

I believe that there is always a possibility to negotiate on any home. How much you can negotiate, depends on several factors, so that is another story.

[Starrynight227]

Take a look at Zillow - Real Estate Valuations, Homes for Sale, Free Real Estate Information for the sales history.

[california_is_superior]

So guys the house im specifically looking at is priced at 800k and has been on the market for 6 months. Im looking to pay no more the then 650. How should apporach the realtor about my price limit. What if he becomes offened by my offer? should i care? Is the best time to purchace a house ?

thanks

[Ultrarunner]

Well they probably will be offended it you start out offering 650K on a home with an asking price of 800K. You might want to make a full price or near full price offer subject to inspection.

Back in the day when everything was selling right and left... I made a full price offer subject to inspection. I ordered a full Pest Control Report, Chimney Report, Roof Report and had a general contractor that was also an electrician look it over.

The upshot was, the seller said the home was in tip-top shape and I knew it wasn't... but I still wanted that neighborhood... the Sellers eventually agreed to credit me almost 100k based on the reports I had done.

The Broker and Agent told the Sellers that they would need to disclose my reports to any other buyers under California's disclosure law.

[Axiom]

Have you looked at what comparable homes have sold for in the area recently?


Is the house already competitively priced? If so; unless the seller is really desperate for some reason, I have a hard time believing he would come down approx 20%

That said, I guarantee there are some houses around here (AZ) that are still overpriced by that much or more. Good luck convincing the sellers of that though.

[Mvn2nc]

Originally Posted by california_is_superior

So guys the house im specifically looking at is priced at 800k and has been on the market for 6 months. Im looking to pay no more the then 650. How should apporach the realtor about my price limit. What if he becomes offened by my offer? should i care? Is the best time to purchace a house ?

thanks

I do not believe for the most part you will ever pick up a house in Monterey for $650 when the asking price is $800k. It took me 6 months last year in Marina to sell mine, it takes time and it would be one big miracle for someone to come down that much, especially in Monterey.
I would suggest you look at the $700k range for what you are willing to pay for.Real Esate agents dont want to waste their time when the price difference of what you are willing to offer is so vastly different.They will become offended and the best time to purchase and have better negotiating oppurtunitys is probably around the Holidays.Its harder to sell a house at that time.