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Hi,
We have found a home for sale that we like in a good neighborhood. Do most people pay full asking price or is there some kind of rule of thumb to go by?! These folks are taking their appliances except the dishwasher. The house is fairly new. The landscaping is sort of plain compared to other homes we have looked at in the same price range. Also, there is only hardwood floors in the living/dining area, steps are carpeted. Some homes in this range offer more hardwood.
I know some of this is personal preference.
Thanks for any advice.
Pay full asking price? Hahahahahaha.... I can tell you around my area people are generally paying 8-10% below asking price and that's for houses whose price matches the tax assessor's value (which many here believe is undervalue to true price)... Pay whatever you want just remember to make it a price that you won't be remorseful about... some houses leave W/D and refrigerators but some don't... all of them leave the stove, oven, built-in microwave, and disposal (if they have one)... I prefer hardwoods then carpet but to each their own..
I think the general rule most people go by is about 5%. Of course in this market people are getting away with asking more off or more concessions. It might depend on how desperate the sellers are and how much they've already reduced the price. You might also get into a bidding war if others are equally interested in the property. It doesn't hurt to ask off the list price though. They either except, counter your offer or refuse it all together.
You or your agent (easier with an agent), should look at recently sold comparable homes to determine if the asking price is reasonable. General market conditions for your area will also provide some insight into what may be a good offer. It's unusual to offer full asking unless their are others also interested in the home and competing with you.
I would ask my agent but use my own assessment. I'd determine myself what the property is worth based on comparable properties that SOLD in the vicinity RECENTLY..... your agent should be able to provide this info. Then I'd offer about 5% less than the value of the property I have determined it is worth. If nothing has sold I would compare to others on the market and develop in my mind a "fair" listing value for the house and take about 8% off for my first offer.. If I thought the house was priced very competitively, I'd probably offer close to full or full asking price with concessions on closing costs. GOOD LUCK!
There is no "rule of thumb". I had a closing yesterday where my buyers paid full price because there were multiple offers. If you want the house, you pay for it. I had a closing last month where the buyers got $20k off the price. Sellers were motivated to sell.
Run your own comps in your own specific area as people in different markets across the country are going through different things. Each house is different. You think they're going to accept 10% off if they've been listed a week, where they might if they've been listed 6 months...
Every house is a different. Seller A may have their house listed 10% above market value. Seller B may have their house listed under market value. You can't just use some "rule of thumb" when making an offer to both of these houses. You have to figure out what you think the market value of the house is.
Thanks everyone. This house just came out on the market a week ago. Apparently the buyers bought it for $324k back in 2007, financed it for $295k, asking price is $289k and they need to relocate. There are no mulitple offers. There are two homes on the same street for sale, both Colonials and one has been listed for $225k for a year still on the market, the other one was listed for $275k reduced to $265k and now it's pending. Sooo...this is what I have to go by. It seems as though if they are asking $289 less 6% commission, they are probably going to break even. The only thought is maybe the company they work for is paying for their relocation. So based upon his additional info...any further advice?! Thank you.
One more thing, I think that $289k is a little too steep. We've looked at alot of homes.
Last edited by tarragon; 05-28-2010 at 01:04 PM..
Reason: Additional thought
Breaking even and commission shouldn't matter to you. Not a concern of yours at all. Same with what they paid for the house. What are the SOLD comps in the area?
I agree with manderly6 on that. You have too look at what's selling right now and for how much.
I bought my house for 110k back in 2002 and now houses in my area are selling for as low as 10k and 20k! Nice huh? Being 8 miles from downtown Atlanta I would have thought even the land alone would be worth more than that. I can tell you I refuse to sell so low that I still owe money to the bank on the house while someone else gets to own it cheap. I've worked too hard for the last 10 years paying the mortgage off to give it away. These people that own the house you like will probably be loosing around 50k from the sale of this house. You might think it's too expensive, but put yourself in their shoes for a minute. I'm not saying you shouldn't get a deal on it in this market. Just giving a little perspective on the situation. No telling how much of a loss their willing to take until you try though.
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