Another real estate question, how much do you generally offer when starting negotiations to buy a house? Eg. if the price is listed at $549,000 - where do you start?
What do you do in the case of 'Offers from $499K' - are you expected to start there, or always go in under?
How Much Do You Offer on a House?
Sweet Potatoes on 05/05/2015 - 19:43
Comments
Generally…you offer what you want to pay on the house after you have done the analysis/research. There is no risk other than other buyers beat you to it.
If it is too low, the agent will tell you they are not going to forward the offer to the owner (this normally applies on "offer from $499k" type of sale so you don't waste each other's time). If it is within ballpark, the agent will ask you to fill a formal offer and forward to the seller, the seller will then accept/reject.Personally, if you want the house, ask the agent if the seller would consider an offer of $xxx to the seller. If you really want the house, make offer at asking price. If you are emotionless on the house, then go 10-20% below market price or asking price, whichever is lower.
Legally, an agent must present ALL offers to the seller, whether they think the offer is too low or not. Other than that, I agree with what you are saying.
unless instructed otherwise by the seller.
That may depend on the state you are in? I have a friend in real estate who is required to pass on all offers, even if the owner has said not to.
My advice is, don't buy houses on emotion, it will be ur largest purchase in ur life (I might be wrong, but u get me.)
So negotiate hard, and don't be scared looking like a fool, coz u never know, offering that 20 or 30k less, might still grab the house. And u saved urself a nice sum, at the risk of looking foolish.After all, if ur low offer isn't enough, someone will tell you, and there's nothing wrong with increasing it afterwards. After all, all the vendor wants is money. So try ur best getting the lowest amount they can accept.
It really depends on the area and how the supply demand situation is at.
usually for listed prices, vendors are more likely from what i have seen take a price lower than listed. For offers over x amount, usually indicate they are happy to sell it at that price unless its in a high demand area.
it also interesting to check if the property has been previously been passed-in at an auction. Many property around my area are listed for much higher than what was offered at the auction and are usually willing to negotiate a lower sale price.
Which STATE? start point all different
Sorry, QLD
if ur in Sydney, u need to offer over 20% of the price, or they will laugh at you
its nuts around here, been to a few open houses, and we get SMS from real estate agent a few hours later that people have offer over 20% of listed price and ask if you want to offer moreTHEY ARE ONLY OFFERING 20% OF THE ASKING PRICE?! Haha. I think you mean 120% of the asking price. Or 20% over the asking price. Not 20% of the asking price… :)
we've just been through this from both sides, buying and selling. It's a negotiation, and the first offer isn't always the final offer.
When buying you offer a bit less than what you think you want to pay and work up, but don't offer too low or they won't think you are serious. Depending on the market, and how long the house has been for sale will depend on wether the offer is under, near or over the listing price. With our recent purchase the agent was pushing for our final offer along with another party at the end of the day he didn't get our highest price because we didn't really get to negotiate, only to 'submit your final offer'. Saved us almost $20k, being under the absolute max price we were willing to go to because the agent was pushing too hard for a final. This is in a market where the buyers are throwing money at anyone who wants to sell a house.
Our recent experience in the hot selling market was that the first offer wasn't high enough to be serious, but an indication they were willing to negotiate. Other offers were more on the money and we ended up with a mutually agreeable number in a couple of days without disclosing to a buyer what our lowest price would be. Hous was on the market for under a week Adam there were four parties with offers.
A slower market becomes easier in a way because there tends only to be one buyer for the property and you do everything you can to keep that buyer.
You offer the price you think it is worth. A house could be priced at $1M and be worth $700k.
Look at sold prices comparable properties in the same area as a guide.