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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Pricing and offer question
If you saw a house that was priced for something39 like 739, 839, 539, etc... would you offer anything under that main number. For instance if the house was 639 would you offer 585 or 599??? Just curious to see what the consensus is..DH and I are having a debate
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Posted 5/21/10 5:21 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
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Re: Pricing and offer question
At 639k my first offer would be 550k.
Maybe 575k if the comps in the area are all above 600k.
If you offer 599k first, then the only way you can negotiate is up. At that price range, I would not offer that close to asking.
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| Posted 5/21/10 5:30 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Pricing and offer question
Posted by ave1024
At 639k my first offer would be 550k.
Maybe 575k if the comps in the area are all above 600k.
If you offer 599k first, then the only way you can negotiate is up. At that price range, I would not offer that close to asking.
wow you're good..see I didn't think to go that low and DH is all about starting out really low...I feel like so much lower than the asking is a really low ball offer, he does not...I guess he's right for once
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| Posted 5/21/10 5:32 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Pricing and offer question
Posted by pickles16
wow you're good..see I didn't think to go that low and DH is all about starting out really low...I feel like so much lower than the asking is a really low ball offer, he does not...I guess he's right for once
It really depends on the comps in the area. There is no way to know unless you look at how other houses in the area sold for.
I mean if every single house in the area sold for over 600k, then it's unlikely they would even entertain a 550k offer.
But when I put in an offer of 550k, I am also coming in with 20% down, no sale contingency or house to worry about selling, and I can show plenty of other assets besides the 20%. So it's a more sure-fire deal. There may be higher offers, from buyers that can only put 5-10% down too.
In the lower market, for houses priced at 400k you probably have to come closer to asking since there is more competition.
My first house was in the 400 area and the last group of houses I was looking at were in the 600 range. I don't think there is as much competition in the 600k market so you can come in lower with your asking price.
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| Posted 5/21/10 5:37 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Pricing and offer question
Oh one other thing... it also depends on how long the house has been on the market.
With a new listing I think the first 3-4 weeks, you won't see ANY sellers coming that low.
If there was a 650k house that came on the market and I didn't want to pay more than 575k, I would probably WAIT a few weeks before I even went and saw it.
I would figure the sellers would never take an offer that low initially. So i'd like to wait it out. If someone got to it before me, they probably paid way more than I would have.
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| Posted 5/21/10 5:39 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Pricing and offer question
Posted by ave1024
Oh one other thing... it also depends on how long the house has been on the market.
With a new listing I think the first 3-4 weeks, you won't see ANY sellers coming that low.
If there was a 650k house that came on the market and I didn't want to pay more than 575k, I would probably WAIT a few weeks before I even went and saw it.
I would figure the sellers would never take an offer that low initially. So i'd like to wait it out. If someone got to it before me, they probably paid way more than I would have.[/QUOTE/]
ITA wit all ur points in this post and before...We are ideal buyers..we do not have any contingencies,we're putting more than 20% down and are ready to go and very flexible with close time, as we own a home now that we do not need to sell in order to buy so we can close whenever the seller wants..it is a new listing, and are very familiar with the comps in the area...the area has actually been very slow and prices just keep dropping and things are on the market for at least a few months before they go, and the comps are in our favor...the house JUST came on, so we would wait, but don't want to get screwed in the end...so we want to time it correctly....
Message edited 5/21/2010 5:44:19 PM.
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| Posted 5/21/10 5:44 PM |
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Xelindrya
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Member since 8/05 14470 total posts
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Veronica
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Re: Pricing and offer question
ITA with everything ave1024 said..
Ours asked 155 we offered 145 negotiated to 151, settled for 149,200. She had the house on the market for over 2yrs!!! and the comps in the area were around 150.
Comps gave me an idea that she was pricing too high
The length of time told me she kept trying unsucessfully to sell it at higher prices. My real estate agent actually had a report of all the previous attempts in the past 5yrs she'd try to sell the house.. for as much as 192k! 
In NY numbers Im paying 400 for a house that was priced at 500. In a place that homes at one point were worth 650, but the comps have brought the price down and the seller has to either go with the times, or pass on a deal.
Also for us our offer was contingent on the appraisal. If the house didn't come in at LEAST the offered amount (151 for us) she HAD to match the price to the appraisal. If it came in more, then she could renegotiate the contract with us. For us, it came in lower, hence we're closing on the lower amount.
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| Posted 5/21/10 6:07 PM |
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METLove2008
LIF Adolescent
Member since 5/08 541 total posts
Name:
Ellie
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Re: Pricing and offer question
It def depends on how much the comps are going for in the area.
Our first realtor had us offer way less on a house then it was worth. They were asking 810k and comps in the area were all selling for a tiny bit little less then that. She told us to offer 705k. I thought she was crazy... but then I figured if I could get it way cheaper... why not? Turns out the sellers weren't amused at all. They didn't even come back with a counter offer... they basically just told us to get lost lol.
We ended up finding a better house and we offered about 75k less then what they were asking... only because it seemed a little overpriced to begin with. They came back with a counter of about 50k less then the original asking price so we took it.
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| Posted 5/21/10 6:16 PM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: Pricing and offer question
There is no set answer to this, it totally depends on the house. We saw a house that we LOVED within 1 week of being on the market. It was listed at a fair price of $569 and someone got the house for $569 all cash. We were willing to pay asking as well but only 50% down. I was wishing the other offer would fall through because we were "next" in line, but unfortunately they closed last week. So you never know!
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| Posted 5/21/10 6:43 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Pricing and offer question
Posted by julz33
There is no set answer to this, it totally depends on the house. We saw a house that we LOVED within 1 week of being on the market. It was listed at a fair price of $569 and someone got the house for $569 all cash. We were willing to pay asking as well but only 50% down. I was wishing the other offer would fall through because we were "next" in line, but unfortunately they closed last week. So you never know!
I def get that...we offered on a house we knew was priced right very close to the asking and were beat out by a cash offer, also within one week of it being on the market..this house is not well priced..we've been following pricing very closely so we know when it's a good deal or not KWIM
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| Posted 5/21/10 7:45 PM |
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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Re: Pricing and offer question
We are paying $14K under asking, but the house was priced right. Our original offer was $30k under asking, and we are essentially meeting in the middle. The sale of my place, well- -that's another story.
We were looking at another house around the corner, with less land and not as many updates that was priced $75K over the house we got.
People are delusional or not motivated to sell.
It totally depends on comps, days on the market and condition of the house.
But, offers significantly less than asking price I think are the norm these days, even when something is priced right.
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| Posted 5/21/10 8:13 PM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
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Re: Pricing and offer question
Our house was listed at 545K which was a VERY fair price when I look back at the other stuff we saw in the same price range, and further east.
When we saw our house, we knew it was the one...and we knew our sellers were probably going to be less than thrilled with our first offer, but we offered 495K.
We wanted to see how badly they wanted to move...
Then they rejected it and countered with 540K...
We settled at 525 and then the house was missing CO's and we knocked 10K off there, so we closed at 515K which was a very very fair price. I always say the house we got has every single thing I've ever wanted in a house. 
If you love it, you'll work it out and get to a number...
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| Posted 5/21/10 8:41 PM |
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Goobster
:)
Member since 5/07 27557 total posts
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:)
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Re: Pricing and offer question
Posted by ave1024
If you offer 599k first, then the only way you can negotiate is up. At that price range, I would not offer that close to asking.
But what if it's a hot or high demand area? Can you really say generally speaking that you would not offer that?
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| Posted 5/21/10 11:29 PM |
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Goobster
:)
Member since 5/07 27557 total posts
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:)
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Re: Pricing and offer question
Posted by pickles16
Posted by ave1024
At 639k my first offer would be 550k.
Maybe 575k if the comps in the area are all above 600k.
If you offer 599k first, then the only way you can negotiate is up. At that price range, I would not offer that close to asking.
wow you're good..see I didn't think to go that low and DH is all about starting out really low...I feel like so much lower than the asking is a really low ball offer, he does not...I guess he's right for once
I agree with you. I would not want my offer flat out looked over b/c someone else bid higher.
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| Posted 5/21/10 11:30 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Pricing and offer question
Posted by ave1024
Oh one other thing... it also depends on how long the house has been on the market.
With a new listing I think the first 3-4 weeks, you won't see ANY sellers coming that low.
If there was a 650k house that came on the market and I didn't want to pay more than 575k, I would probably WAIT a few weeks before I even went and saw it.
I would figure the sellers would never take an offer that low initially. So i'd like to wait it out. If someone got to it before me, they probably paid way more than I would have.
Good points...so what if you did want to bid when it first came on?
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| Posted 5/21/10 11:32 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Pricing and offer question
Posted by Goobster
Good points...so what if you did want to bid when it first came on?
I would bid carefully and make sure I was aware of ALL the comps in the area, as well as how long they sat on the market. A good buyer's agent comes in very handy here.
Every situation is different. Of course if you absolutely LOVE the house, you could bid more I suppose. House buying is not always about getting the best "deal". You also need to live in it (and enjoy it) for the forseeable future.
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| Posted 5/22/10 12:17 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Pricing and offer question
Also keep one thing in mind. If you have been looking at houses in the same neighborhood for a while (i'd say at least three months)... you probably already know where the good deals are with the new listings.
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| Posted 5/22/10 12:18 AM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Pricing and offer question
Posted by ave1024
Also keep one thing in mind. If you have been looking at houses in the same neighborhood for a while (i'd say at least three months)... you probably already know where the good deals are with the new listings.
We've been loooooking for a while...we def know a good deal when we see one, that's why we struck on that one house that we got out bid by a cash offer for it..we KNOW this house is not a good deal where it's priced..the houses seem to sit for a while in this area and slowly drop before any activity...it's a lot of older ppl moving out to florida/downsizing etc..and younger couples/families moving in...so these ppl arent in a rush to sell so they can wait, but they rarely win in the end, bc they end up lowering the prices significantly...I just happen to really like this house and don't want to be the first "low" bid but also want to get the house..it's only been on the market for a week..so don't want to upset them and give them a realistic yet low bid...
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| Posted 5/22/10 8:33 AM |
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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Re: Pricing and offer question
Posted by pickles16
Posted by ave1024
Also keep one thing in mind. If you have been looking at houses in the same neighborhood for a while (i'd say at least three months)... you probably already know where the good deals are with the new listings.
We've been loooooking for a while...we def know a good deal when we see one, that's why we struck on that one house that we got out bid by a cash offer for it..we KNOW this house is not a good deal where it's priced..the houses seem to sit for a while in this area and slowly drop before any activity...it's a lot of older ppl moving out to florida/downsizing etc..and younger couples/families moving in...so these ppl arent in a rush to sell so they can wait, but they rarely win in the end, bc they end up lowering the prices significantly...I just happen to really like this house and don't want to be the first "low" bid but also want to get the house..it's only been on the market for a week..so don't want to upset them and give them a realistic yet low bid...
Are you not working with a realtor? I would have them talk to the listing agent to get a feel for the seller's state of mind.
We saw a house that was totally overpriced, but when our realtor inquired and told them that-- which we felt was the case-- their realtor agreed and had already had a meeting set up with the seller to discuss actually selling.
Sometimes yuo need to do a little fact finding with the situation before you can put your offer in-- because based on a list price that's not right-- you have no clue where to come in.
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| Posted 5/22/10 8:39 AM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Pricing and offer question
Posted by randella
Posted by pickles16
Posted by ave1024
Also keep one thing in mind. If you have been looking at houses in the same neighborhood for a while (i'd say at least three months)... you probably already know where the good deals are with the new listings.
We've been loooooking for a while...we def know a good deal when we see one, that's why we struck on that one house that we got out bid by a cash offer for it..we KNOW this house is not a good deal where it's priced..the houses seem to sit for a while in this area and slowly drop before any activity...it's a lot of older ppl moving out to florida/downsizing etc..and younger couples/families moving in...so these ppl arent in a rush to sell so they can wait, but they rarely win in the end, bc they end up lowering the prices significantly...I just happen to really like this house and don't want to be the first "low" bid but also want to get the house..it's only been on the market for a week..so don't want to upset them and give them a realistic yet low bid...
Are you not working with a realtor? I would have them talk to the listing agent to get a feel for the seller's state of mind.
We saw a house that was totally overpriced, but when our realtor inquired and told them that-- which we felt was the case-- their realtor agreed and had already had a meeting set up with the seller to discuss actually selling.
Sometimes yuo need to do a little fact finding with the situation before you can put your offer in-- because based on a list price that's not right-- you have no clue where to come in.
We are. The sellers realtor isn't familiar with the area.. No clue why they hired her, I think they're friends, but her area of expertise is NOT this town..so when our realtor tried to talk to her about numbers, her stock answer was it just came on the market I don't know where they're going to want to end up...which is total BS in my opinion...she's been annoying to even set up a showing with bc she's off doing her regular area and seems like she's fitting in showings... Believe me, we're huuuge researchers and DH is beyond calculated he'll never put an offer in without fact checking and researching at least 50 times...he's a bit overly anal
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| Posted 5/22/10 8:43 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Pricing and offer question
Posted by pickles16
We are. The sellers realtor isn't familiar with the area.. No clue why they hired her, I think they're friends, but her area of expertise is NOT this town..so when our realtor tried to talk to her about numbers, her stock answer was it just came on the market I don't know where they're going to want to end up...which is total BS in my opinion...she's been annoying to even set up a showing with bc she's off doing her regular area and seems like she's fitting in showings... Believe me, we're huuuge researchers and DH is beyond calculated he'll never put an offer in without fact checking and researching at least 50 times...he's a bit overly anal
It really doesn't matter if the seller's realtor is not familiar with the area. You want to make sure your buyers agent is.
If they don't want to budge on price, wait it out.
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| Posted 5/22/10 3:42 PM |
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JDubs
different, not less
Member since 7/09 13160 total posts
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Re: Pricing and offer question
we found when we bid too low we lost out on houses we really liked... so to be competitive we started out about 20k below asking. we ended up paying 5k below asking (what they countered everyone's offers with) because we really liked the house and did not want to see it go... and it was also priced right for the market & area
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| Posted 5/22/10 4:42 PM |
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