Purchasing house strategies

[mstng86]

We are looking for a house and have been for a few months. HOw have you guys handled your offers or bidding?

We looked at a house today and asked the realtor to submit an offer for about 14k less than the asking price plus closing. I only asked because I want to start low and see what the response is. The realtor just thinks asking for what would amount to 20k+ off the price is just crazy.

Am I being unreasonable in that being a starting off point? I don't expect them to just take my offer. I expect some back and forth, and quite possibly no negotiation at all. But damn, you have to start somewhere right?

[Strychnine]

What percentage is that?

[mstng86]

What percentage is that?

About 9%

[krazy kris]

Depends on a few things. Are you on a time crunch?How long the house has been on the market. They may just pass over your offer and not take you seriously if they have offers flying in

[Strychnine]

I haven't tried to sell a house lately and haven't bought one in 4 yrs but I would think that's about double the concession anyone would make.

But I could also be very wrong.

[bcoop]

Every house as every situation is different, and should be handled as such. Good realtors know this. I'd ask the realtor what makes them think its crazy. Specific reasons. Seller could be hard pressed. Maybe it's been on market for a year or more. I'd want to know why specifically they think its crazy. I've seen plenty of houses sell with much more than 10% knocked off the asking price.

[Vertnut]

Every house as every situation is different, and should be handled as such. Good realtors know this. I'd ask the realtor what makes them think its crazy. Specific reasons. Seller could be hard pressed. Maybe it's been on market for a year or more. I'd want to know why specifically they think its crazy. I've seen plenty of houses sell with much more than 10% knocked off the asking price.

Yeah. There's a ton of variables to consider. The comps in the area will give you a fair idea of where to be on your offer. If the offer is too low for the area (assuming they are asking a fair price), they may not take you too seriously. At these rates, you're only paying about $4 per $1000 you borrow (on a 30-year note). Do you want to lose a house over $20 a month?

[mstng86]

Every house as every situation is different, and should be handled as such. Good realtors know this. I'd ask the realtor what makes them think its crazy. Specific reasons. Seller could be hard pressed. Maybe it's been on market for a year or more. I'd want to know why specifically they think its crazy. I've seen plenty of houses sell with much more than 10% knocked off the asking price.

This I do understand. It does depend on every situation. Her argument is it is one of the newest houses we have seen and it seems unrealistic.

I am not saying its a low ball, and they could look it over, but why not at least throw it out there and see if they will play the game? Also, I think the guy moved out of state or something. So I am hoping he made be hard pressed to just let it go. It just now came on the market though.

[2011GT]

Just coming from me you need to look at the comps of other homes in the area. If I received that offer I would have just ignored it.

[Vertnut]

Like I said, would you want the house for another $20 a month? That's $5000 of purchase price.

[ceyko]

This I do understand. It does depend on every situation. Her argument is it is one of the newest houses we have seen and it seems unrealistic.

I am not saying its a low ball, and they could look it over, but why not at least throw it out there and see if they will play the game? Also, I think the guy moved out of state or something. So I am hoping he made be hard pressed to just let it go. It just now came on the market though.

Some of this is intel a good agent will provide you as well. How long has the house been listed? You should be able to find this easily without your agent.

Just too many variables. *I* would counter on a 9K difference on a 100, 200, 300...whatever home *IF* I was not getting a ton of showings and/or offers. Of course, initially I had that built into my price assuming I'd get low balled.

Edit: Saw where you mentioned it just came on market. I'd still counter, minus the caveats above. There is a chance he already has it priced to sell though (do your comps w/o agent for your own education) and won't budget much if at all.

[TexasT]

If that is what it is worth to you, find another realtor and have them submit it. They work for you.

All of the realtors I have used are told up front that I am picky and want a bargain.

[robert]

If your Pre-Approved then it makes you a serious Strong buyer
Not Pre-Qualified Pre approved which in most cases are only good for 30days
If my memory serves me well.
Then any offer is really considered, any offer.
G/L

If your buying cash then of course more power to you, your in charge....

[SVT Lurch]

It just now came on the market though.

Your answer.

[Rick Modena]

10% seems to be the norm in this area. Its not that difficult for them to make an offer, if they don't want to make an offer find another realtor.