Buyers Agent...question for you (buyer's agent, listing, percentage, seller)

[Thehouse]

what the highest amount were you able to negotiate off the listing price?

for example....home listed for 200k and you were able to get it down to 120k.

hopefully i am not intruding on some inside secret.

[AngelBy]

Originally Posted by Thehouse

what the highest amount were you able to negotiate off the listing price?

for example....home listed for 200k and you were able to get it down to 120k.

hopefully i am not intruding on some inside secret.

I read somewhere on the internet that the seller (or listing agent?) usually marks up the price 20-30%, so you can make an offer at least about 25% off, then go up a little bit ...

In your case, you want to negotiate off 40%

[MrRational]

Originally Posted by Thehouse

home listed for 200k and you were able to get it down to 120k.

The merits of a buyers agent aside...
do you really think there are many properties listed at 67% above what the seller will ultimately accept?

[peachstatehomegal]

Wish I found those kinds! lol

[George Chong]

Originally Posted by AngelBy

I read somewhere on the internet that the seller (or listing agent?) usually marks up the price 20-30%, so you can make an offer at least about 25% off, then go up a little bit ...

In your case, you want to negotiate off 40%

Originally Posted by MrRational

The merits of a buyers agent aside...
do you really think there are many properties listed at 67% above what the seller will ultimately accept?

What Listing a property is nothing like making a decision to sell a retail product (at least not with a good Listing Agent).

There are so many factors involved in listing a property properly in this market. What have comparable properties sold for in the last 6 months? What is your competition like? This is still a Buyer's Market - not a Seller's Market. Appraisals are still very tight and unless you have a huge amount of equity, I don't see such margins.

There is no rule that if a property is listed for x price that you should offer y price. If a potential Buyer is going into a possible offer with the thought that you should offer 40% less than asking price - one is best not waiting for a sale at Macy's or a Buy One Get One Free at another retail store.

There are no trade secrets. When I am a Listing Agent, there is no rule in listing a property for sale other than doing my homework. If similar properties have been selling for $120K and my potential Seller wants $200K but would be willing to come down to $120K, I would not take the listing. It would be a waste of my time.

[MrRational]

Originally Posted by George Chong

What??

If similar properties have been selling for $120K and my potential Seller wants $200K...
but would be willing to come down to $120K, I would not take the listing.

Which is what I believe was said (with fewer words).

[2bindenver]

That strategy might work if a house was easily replicated like a plane ticket, a book, a shoe, or a stock certificate.

A property is unique - a combination of location, inclusions, condition, color, lot size, and motivation (reason for selling.)

It's not a good idea to hire a buyer's agent solely to get you a certain percentage off the list price.

It is a good idea to hire a buyer's agent to advise, advocate, strategize and ultimately get you the house you wish at a price you are willing to live with.

[Thehouse]

guys, i am not an agent. i just felt like asking.....curious if you will.

and the example i gave means nothing. i just throw a number out there. you guys are the experts..

[MrRational]

Originally Posted by Thehouse

guys, i am not an agent. i just felt like asking.....curious if you will.

The lesson Thehouse, is that regardless of what an agent may or may not be able to do in the sale and offer process...
the burden is still on the buyer (and marginally the seller) to have a rational and objective basis for determining
what they believe to be the right price. All of the information needed to do that is commonly available; most for free.

(There will still be room for some subjective valuation too though)

hth

[peachstatehomegal]

A good buyers agent will help you find the house you're looking for, with as much ease as possible.

Once you find a house you're interested in, and have been through it and decided to make an offer, a good agent will do a little 'homework' about the area and suggest a fair offering price.

If you go to an agent and ask them to sift through the listings (that match their criteria) and point out which ones will take a 50%+ offer, that's just insane!!

The comps will 'tell' what a house should be listed for, and hopefully sell for. Nothing is set in stone, but it usually doesn't sway quite that much!

That being said, I did hear once of someone who found a house listed at $80K that had been on the market forever, and offered the owner $40K and they took it... I can't verify that transaction, though - just sayin!