How Much?????

Is safe to go below asking price when making an offer on a house? (don't want to insult anyone!)

Just curious as we are just embarking on house-hunting!!!

Re: How Much?????

it depends on the area, how is it priced, etc. Its not a clear cut %, but in todays market most are offering less and most sellers are accepting less. Even if you offer low, they can always come back and counter your offer.

We started out offering 11K less
then countered with 6K less
we countered with 8K less
we agreed to 7K less

Just to help you out.

Re: How Much?????

This depends on how the house was priced. Your offer should be based on what similar houses have sold for. Some sellers price exactly at what the sales price should be, others way above.

In terms of insulting the buyers, you never know what the personalities involved are, so you just really have to decide what you think is a fair price and go with it.

Re: How Much?????

We offered 10% below asking price. They countered and we agreed to 6% below asking price.

Re: How Much?????

There's really no standard answer for this.

I think you need to consider what comps have sold for in ther area.

Any slight differences btwn your house and the comps.

Condition of the house... not talking simply cosmetic like paint and wallpaper but major updates, old windows, cracked cement, older heating units, etc.

Location... for example houses on busier roads are not considered as desirable.

ETA: Situation of the seller if you can find it out. If they already have another property, the house is vacant, it's a divorce situation it is usually to your advantage price wise

There are houses out there that are priced right for all of the above and they are selling a lot faster than what people have gotten used to.

Message edited 3/1/2007 3:06:10 PM.

Re: How Much?????

All of the above, plus the number of days it's been on the market.

Re: How Much?????

Re: How Much?????

I thinks its reasonable to offer 10% below, settle somwhere around 5% less... Adjusting of course for location-condition all that good stuff

Re: How Much?????

I agree, it does depend how the house is priced. We offered $10K less, but we thought the house was priced well for the neighborhood and the condition. If we thought it was in bad shape or if it wasn't a house we loved, was in a neighborhood we didn't like as much, we would have offered less than we did. It's probably best to offer a little lower than the amount you would pay for the house since many sellers will counter.

As you look, you'll get a better idea of how things are priced in areas, and you'll start to know if something is a good deal or not, at least on the surface. This is all contingent on a good house inspection of course, if there are things wrong with the house, you may want to renegotiate your original price.

Re: How Much?????

Re: How Much?????

We bid 20k lower than asking and ended up paying 10k lower in the end.