Asking price versus selling price?

Our friend said we need to look at houses above our price range because we can negotiate...but I don't know if it's realistic to do so? Any input?

Re: Asking price versus selling price?

I think it really depends upon your budget. If you have a 600k budget I would look up to 650-675 and offer 580. But if you have a 300k budget I would look up to 350 and offer 300.

Re: Asking price versus selling price?

It really comes down to each individual house -- Is it priced right for today's market (in line with other comparable sales in the area)? Is the seller motivated?

It's hard to make a blanket statement.

It also depends on you. If you are preapproved for $400K and you are comfortable spending up to $400K, then I would show you houses up to $429K. But I wouldn't really go higher than that. There's no guarantee that someone is going to come down $50K in negotiations, you know? And I wouldn't want to waste your time as my customer.

But if you told me you are preapproved for $400K but don't want to spend more than $380K, then I would probably have you look at houses priced up to and under $400K only.

Houses that are priced right are selling quickly and for close to asking right now. I have been involved in many multiple offer negotiations lately, and buyers who are making unrealistically low offers are spinning their wheels right now.

My best advice for house hunting is to do what YOU want to do, and to take the advice of the professionals you engage to help you (your realtor, your mortgage lender, you attorney, your home inspector). Everyone has friends and relatives who give a lot of well-meaning advice, but there are A LOT of self-proclaimed real estate experts out there that aren't providing fact based, accurate info!

Feel free to contact me if you need any help or just want to bounce a question off someone. I am always happy to talk real estate!