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Old 01-21-2007, 02:24 PM
 
Location: So. Dak.
13,496 posts, read 25,231,190 times
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When you're trying to buy a home, what percentage of the asking price do you normally offer to start with? I've read that if the seller is motivated and you offer 80% of the asking price, you'll normally get the home. Is anyone selling their home that received offers and what % was offered? OR is anyone trying to buy a home and the same question applies.
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Old 01-21-2007, 05:01 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 10,206,804 times
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My dad gives a lowball offer that makes the seller laugh. Then he inches the offer higher, the seller inches his asking price down. Eventrually, the price points merge that satisfy both parties. When I move north, dad will negotiate for me, probably start with a lowball offer 50% of the asking price, if the seller jumps on the offer, ill be supprised but hey ill take that. If seller doesnt, ill inch my offer up. Another thing you can do is make 10 offers on 10 sellers and take the one who is willing to drop his price the most
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Old 01-21-2007, 05:30 PM
 
Location: Marion, IN
8,192 posts, read 19,604,251 times
Reputation: 6639
Quote:
Originally Posted by Need_affordable_home View Post
My dad gives a lowball offer that makes the seller laugh. Then he inches the offer higher, the seller inches his asking price down. Eventrually, the price points merge that satisfy both parties. When I move north, dad will negotiate for me, probably start with a lowball offer 50% of the asking price, if the seller jumps on the offer, ill be supprised but hey ill take that. If seller doesnt, ill inch my offer up. Another thing you can do is make 10 offers on 10 sellers and take the one who is willing to drop his price the most
If anybody ever offered 50% of my asking price I would counter with a price HIGHER than the list. I would be offended, and would not take the bidder seriously.

To answer the original question, you can offer whatever you think is fair. How low the seller will go will depend on things like how much they owe on the property, housing prices where they are looking to move, etc. Unless you know a lot about the seller and his/her particular situation it is hard to guess. When I sold my last house (in FL) it went for $3,900 under list price. I bought this house (in SC) for $7,500 under list in a MUCH less expensive market than the one I sold in.

Beware of offending the seller. Some sellers are not in a position to negotiate.
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Old 01-21-2007, 05:36 PM
 
Location: Pasco County
177 posts, read 489,937 times
Reputation: 74
Quote:
Originally Posted by Jammie View Post
When you're trying to buy a home, what percentage of the asking price do you normally offer to start with? I've read that if the seller is motivated and you offer 80% of the asking price, you'll normally get the home. Is anyone selling their home that received offers and what % was offered? OR is anyone trying to buy a home and the same question applies.
In Pa., the realtor does a comparative market analysis and you have a pretty good idea what similar properties are selling for. If you offer 50% of the asking price, I don't believe a reputable agent would even send the offer to the seller. Most sellers have a bottom line and will not accept any offers below that.
If it is a FSBO, the owner is selling by themselves to maximize the amount of money they will get from the sale. I don't think that they would entertain a low ball offer.
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Old 01-21-2007, 05:57 PM
 
2,141 posts, read 4,818,197 times
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A lot of people out there decided that housing was a get-rich-quick scheme,Ultimately, greed overwhelmed the market. Well now the market is real slow. A reputable agent would not even send a lowball offer to the seller last year. But the Market has changed and last years comps don't mean a thing. That lowball might save the seller alot of money and be glad to take it.
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Old 01-21-2007, 05:58 PM
 
1,607 posts, read 7,244,695 times
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If you offer too low you can offend the sellers and they will not negotiate. Most people end up saving 5-10 percent off the listed price. Start with 10 percent off and go from there.
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Old 01-21-2007, 06:08 PM
 
Location: Central FL
1,682 posts, read 5,871,188 times
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When I was selling my home, I had a buyer offer what I considered to be a ridiculously low price (although it was no where near 50%- it was more like 20% off). I laughed at him. I don't consider someone like that a serious buyer. I ended up selling the house for 10% more than the asking price...but this was in the fall of 2004. However, that buyer still got a good deal as homes all around her are currently selling for 60 - 70K more than she paid. While they are not selling at the rapid pace of two years ago - they are still selling.
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Old 01-21-2007, 06:11 PM
 
2,141 posts, read 4,818,197 times
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Quote:
Originally Posted by RedWingsFan View Post
If you offer too low you can offend the sellers and they will not negotiate. Most people end up saving 5-10 percent off the listed price. Start with 10 percent off and go from there.
This is a bear market, 30% might offend someone but your not there to make friends. Last year alot of buyers were offended. There are too many homes out there to worry.
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Old 01-21-2007, 06:13 PM
 
Location: Danbury CT covering all of Fairfield County
1,847 posts, read 3,786,304 times
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In my area, the difference in the list price and sale price is only about 2.5%
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Old 01-21-2007, 06:42 PM
 
Location: Live in NC & Work in Chesapeake VA
8 posts, read 20,288 times
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I'm a real estate agent, and I can tell you from experiance. At times when you offer a low ball price. Some people do get offended by low ball offers, and would not even think about counter offering. But you have to start the offer somewhere. I would look at the CMA and see how long the property have been on the market, and if the property is in a subdivision that sells very quickly, and the house you are looking at is well kept. I would advise my clients to offer closing cost assistance. Some subdivision is very popular, and is hard to find houses for sale. If the property needs a lot of work. I would advise my clients to consider offering carpet allowance for example, money off the asking price. Every situation is different, you always have to keep in account what's involved.
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