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Old 08-01-2008, 10:28 AM
 
1,462 posts, read 4,439,121 times
Reputation: 1014

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I'm looking at a townhome that is listing for around 300 in Central NJ. I did some research, I found out what the current owners paid on the home, and I was ready to present an opening offer of 14% off asking with no contingencies. My price provides the owners with a decent profit margin from what they paid 5 years ago, when the market was similar to what it is now. My strategy is to negotiate to around 10 percent off asking.

My parents, who I trust implicitly, said that in this market, 14% off is a good opening bid.

My real estate agent (not the listing agent, my buyers agent) just had an absolute meltdown, telling me that the home is fairly priced and offering 14% off is way too low. She kept telling me that the current price is a good price, even though houses in the same development were selling at the same price point before the subprime meltdown happened.

I've reviewed comps from 2007, dating back to 2001. I know the market's bad. But it's also central NJ, which is a little more insulated from the crisis, IMHO.

I wanted to get some thoughts. My stomach is killing me.
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Old 08-01-2008, 10:30 AM
 
Location: Here but I spend time There.
1,972 posts, read 5,173,747 times
Reputation: 556
Quote:
Originally Posted by SweepTheLeg View Post
I'm looking at a townhome that is listing for around 300 in Central NJ. I did some research, I found out what the current owners paid on the home, and I was ready to present an opening offer of 14% off asking with no contingencies. My price provides the owners with a decent profit margin from what they paid 5 years ago, when the market was similar to what it is now. My strategy is to negotiate to around 10 percent off asking.

My parents, who I trust implicitly, said that in this market, 14% off is a good opening bid.

My real estate agent (not the listing agent, my buyers agent) just had an absolute meltdown, telling me that the home is fairly priced and offering 14% off is way too low. She kept telling me that the current price is a good price, even though houses in the same development were selling at the same price point before the subprime meltdown happened.

I've reviewed comps from 2007, dating back to 2001. I know the market's bad. But it's also central NJ, which is a little more insulated from the crisis, IMHO.

I wanted to get some thoughts. My stomach is killing me.
Your agent is supposed to work for you. Higher buying price, higher commission, but in the end, you can offer whatever you like and your agent has to present that offer no matter what.
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Old 08-01-2008, 10:33 AM
 
Location: Weehawken, NJ
2,179 posts, read 6,390,524 times
Reputation: 1167
Start at 225K and make them talk you up. I don't believe a one thing most (there are some good ones) realtors say. Jobless rate is up, gas is sky high, groceries are getting out of control.

225K
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Old 08-01-2008, 10:34 AM
 
Location: New Jersey
2,171 posts, read 4,750,859 times
Reputation: 1725
it depends on the specific neighborhood. i received comps of one of the towns where i am looking for a house, and typically most houses were sold within 30-45 days and within 3-5% below asking price. i was surprised when i saw those numbers, because based on the market conditions i was expecting numbers to be at least 8-10% below asking price.
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Old 08-01-2008, 10:37 AM
 
Location: Weehawken, NJ
2,179 posts, read 6,390,524 times
Reputation: 1167
Quote:
Originally Posted by davenj08 View Post
it depends on the specific neighborhood. i received comps of one of the towns where i am looking for a house, and typically most houses were sold within 30-45 days and within 3-5% below asking price. i was surprised when i saw those numbers, because based on the market conditions i was expecting numbers to be at least 8-10% below asking price.
Wow, 5% Still a fools market in parts on NJ, I see. But then again, nothing that happens in this state surprises me anymore.

Greenspan said the housing market is nowhere near finished falling. I would take his word over any idiot taking 5% off the list price on a home.
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Old 08-01-2008, 10:40 AM
 
1,462 posts, read 4,439,121 times
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House has been on the market 40 days. A similar house in the same neighborhood has been on the market for 90 days. Similar house is around 290, but the owners on that are upside down.
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Old 08-01-2008, 10:41 AM
 
Location: MN
1,669 posts, read 5,930,421 times
Reputation: 955
Get a new realtor.
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Old 08-01-2008, 10:41 AM
 
Location: NJ
12,285 posts, read 33,877,477 times
Reputation: 5281
Quote:
Originally Posted by davenj08 View Post
it depends on the specific neighborhood. i received comps of one of the towns where i am looking for a house, and typically most houses were sold within 30-45 days and within 3-5% below asking price. i was surprised when i saw those numbers, because based on the market conditions i was expecting numbers to be at least 8-10% below asking price.
GUARANTEED several of the units were on the market originally at a higher price, taken off, given a new MLS number and magically sold at 3-5% below with 30-45 days. It's a nice little shell game that is played.

but my disclaimer is: there are some townhome developments that are someone insulated. they are very reasonably priced out the gate and are wonderful for 1st time buyers.
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Old 08-01-2008, 10:43 AM
 
Location: NJ
12,285 posts, read 33,877,477 times
Reputation: 5281
Quote:
Originally Posted by moving123456 View Post
Get a new realtor.
I agree 100% - this person has no interest in working for you and I'd be leery about their conduct from this point out, even if they did present your (VERY REASONABLE) offer.
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Old 08-01-2008, 10:44 AM
 
Location: High Bridge
2,736 posts, read 9,182,514 times
Reputation: 670
Your realtor is an idiot.

Did your realtor provide you with recent comps, past 6 months? Did your realtor give any quantifiable reason why the price is "fair"? If not, your realtor is full of it.

Regardless of comps or your realtor's position, they must present your offer. I say go for it.
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