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Ok here is the deal...I am in the market looking for a house. I am pretty much pre-approved whatever amount i need. I am looking at a house that has been in the market for over 250 days!
Let say the seller asking price is $500k. It has been in the market for that long. The seller no longer living in the state ....they lived somewhere else..another state...if I go in with an offer like...25% lower than their asking price.....what are the % they will take it....
Location: Stuck on the East Coast, hoping to head West
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I'm thinking if the seller is ok with the house sitting for that many days, they're not in a rush and are holding out for their price.
But this post brings up an interesting question, is there a certain number of days on the market when chances are higher of having a lower offer accepted? For example, around here schools start in August so thinking that the sellers would be motivated at the end of summer? Or is 3 months perhaps when sellers start getting antsy? Just wondering....
Location: Moved to town. Miss 'my' woods and critters.
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PghREA is right. But, go ahead and make an offer but only for what you really believe it is worth to you, and after you do a little homework. Do you have an agent working for you? Might just do that and question them about offer.
Also bande1102 has a good point. Seller is not in much of a hurry it would appear.
I drove by today, seeing one of the person working on the house...there is over grown aroundthe house..they are using Help U sale agent apparently.
The house around the neighborhood is around 300s-400s...
I am in process getting one agent..dont have yet
I have had properties on the market longer than that that the seller stayed pretty close to asking.
I have also had properties on the market 2 weeks that the seller took an offer way below asking. You never know until you make the offer but if you are looking for a home that you will be living in for a while why are you limiting yourself.
If a buyer has had it out there that long they could be the type to hold out.
Why not just find what you are looking for regardless of days on the market and make an offer you are comfortable with.
Okay, one of my pet peeves. The real question is: How much is the home worth??? That should determine how much of a lowball offer you make. A home can come on the market at below market value and be a steal at full price even though it's a brand new listing. Another home can come on the market way above market, but the seller won't negotiate much because he thinks he just needs to hold out longer to get what he wants. (He probably better have a long-term nursing home policy in that case.) Then you've got another home that's been on the market a long time, probably started out high but the seller's been steadily dropping the price. Maybe now he's actually below market value. (It always hurts sellers to overprice in the beginning because their listing gets stale and they end up with people like myselfdotcom who think the longer it's been on the market the more they can lowball.)
It all boils down to what the home is really worth. Yes, you'll want to try to get the home for below market value, but you also need to be realistic. Would you rather get a home that's overpriced by $150k for 75% of list price, or would you rather get a home that's underpriced by $25k for 95% of list price? You need to know the market, not just shoot for an arbitrary price percentage reduction.
Last edited by Gretchen B; 07-13-2007 at 11:04 PM..
Ok here is the deal...I am in the market looking for a house. I am pretty much pre-approved whatever amount i need. I am looking at a house that has been in the market for over 250 days!
Let say the seller asking price is $500k. It has been in the market for that long. The seller no longer living in the state ....they lived somewhere else..another state...if I go in with an offer like...25% lower than their asking price.....what are the % they will take it....
Personally, by making a lowball offer like that, you're A) insulting the owner and B) putting your Realtor in a very uncomfortable position. If a house is priced fairly for the market, you should make a competitive offer regardless of how long it has been on the market.
I am not sure about the insulting seller...i mean at the end of the day, i am on the that is paying the darn mortgage. If they are insulted fine with me..i will just moved on really. I am not here to make friend. I am here to do business. Second of all, the low i am talking about is about80%-85% than asking price...if you really go around investor corner..them guys offer 70%.
I believed the house is worth that much when the houses surrounding are only goes for xx amount of $.
Marie,
If you are a RE....why you care so much about a seller stand point if you are represnting the buyer....conflict of interest..trying to maximise your commision? You should be looking out for the buyer...awaward situation for RE agent? maybe if they felt that way, they should change their career, really.
I think you are getting some solid, realistic advice here. You were asking what people thought of a 25% lower than asking price offer. It really boils down to a compromise between what the buyer thinks a house is worth and what the seller thinks a house is worth. To me, it sounds like you are starting too low to "meet in the middle."
But, hey, it is your mortgage and you should only offer what you're comfortable with and what you can afford.
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How much is the home worth???
The real question is: How much is the home worth??? That should determine how much of a lowball offer you make. A home can come on the market at below market value and be a steal at full price even though it's a brand new listing. Another home can come on the market way above market, but the seller won't negotiate much because he thinks he just needs to hold out longer to get what he wants. (He probably better have a long-term nursing home policy in that case.
) Then you've got another home that's been on the market a long time, probably started out high but the seller's been steadily dropping the price. Maybe now he's actually below market value. (It always hurts sellers to overprice in the beginning because their listing gets stale and they end up with people like myselfdotcom who think the longer it's been on the market the more they can lowball.)
