House: asking vs offered Price (to buy, property, to work)

[wilhal]

Thanks for the advises! I appreciate it.

We're narrowing down to 3 houses now, and the top candidate is on a busy street in Squirrel Hill. When I mentioned about seller's market vs buyer's market to the realtor, she said that it's becoming more of a seller's market now in Pittsburgh -- especially this time of year.
So, I'm sensing that she may discourage underbidding.

More about the top pick: it has been on the market since last summer, the price has been reduced several times (recently dropped to 18% less than the original price); the house is currently being rented.

So, still underbid?

thanks!

[Copanut]

Your agent says it's a seller's market, yet the price of the home has been reduced several times. Offer a low bid and get another agent.

[Drover]

1) "Seller's market"

2) "Been on the market since last summer"

See the inherent tension in these two statements?

Conclusion: underbid.

[Pittgal]

Underbid....

We close on a house this week and are paying less than the asking price. When our realtor pulled comps for the area we found that every single house sold for 5-10 thousand under asking price. I still think its a buyers market...people are desperate to sell and everything is sitting around here....plus the mortgage game has changed and alot of people cannot even qualify anymore.

[Copanut]

I paid 50K less than the prior sales price on my home ten years ago. It was vacant, I found out how much the owner owed, bid 2 K higher and he took it. Don't trust your agent, the higher the sales price, the more they make in commission. Do some leg work on your own, always bid low, your agent is REQUIRED to present that offer. There are tons of homes on the market now, and a large percentage are vacant.

[robrobrob]

If it is rented and they are covering their mortgage they have less of an incentive to take a low ball offer.

[Copanut]

Originally Posted by robrobrob

If it is rented and they are covering their mortgage they have less of an incentive to take a low ball offer.

I'm talking VACANT houses. Best deals in the world.

[robrobrob]

I was referring to the original poster's situation. The poster said that the house is on the market and currently being rented.

[CJCsMom]

We just had an offer accepted on a house in Bethel Park. We offered them $10,000 less than the asking price and they countered at $5000 less and we accepted. They were in a position that they had to have that amount to cover what they owed. There are many homes on the market right now, but now that spring has arrived, more people will be looking, so keep that in mind.

I think between 8-10% less of the asking price is a reasonable place to start.

[hempfield mania]

Yep, get under contract asap and make sure you close before the deadline (make sure the seller can close by the deadline - renters may make things more difficult for you) to take advantage of the homebuyer tax credit. You don't want to throw away 6500 or 8000 dollars. That being said, I would still underbid somewhat and make sure you stay within your comfort zone. Good luck.