How much Below asking should you offer when buying a house?

[mramseyISU]

Wondering if any offer could insult the seller after 700 days on the market.

Wonder why the home has been available that long and if the OP will face the same headwinds when selling

The owner is one of the brothers that owns PCI contruction he build a palace about a half a mile a way (took them two years to build) I don't think he's hurting for money but I hear he was considering turning it into a rental it's been sitting for so long.

 

[Acylum]

Several years ago I listed a house with a realtor on a Friday and it sold over the weekend for the asking price, before the listing ever came out in the local paper. The buyers walked through it that Saturday with our realtor, who turns out was good friends with them.
This is a long way of saying do your due diligence.

 

[BCClone]

I think the biggest issue is for the same money you can build a house and get that tax abatement 5 blocks away. Most of the houses in our neighborhood have taken 4-6 months to sell in the last couple years because there is a new development going in a 1/4 mile away. They are selling a few lots over buy this house in question and they are all going for $100k. We went and looked at it last night and really like it. Basically it's going to come down to two things, what the realtor wants to give us for our house and if we can get it down to somewhere around the zillow estimate or below.

Lately buyers are getting closing concessions of 3-6%. Basically getting a kickback that will help with down payment. It is supposed to be reduced off appraisals but is so common that some appraisers are not reducing it anymore.

 

[twojman]

Ignore the Zillow estimate.
Inside Zillow you can see what similar houses have sold for over the last 90 days or 6 months (lots of options). You can filter for bedrooms, bathrooms square footage etc.

 

[Dandy]

We're on house number two. First one we offered 84% of asking price, they came back at 87% and we accepted. Second one we offered 93% of asking price, they accepted.

 

[knowlesjam]

I was always told that 90% of price was a low ball, 95% was a good offer, and 97% was a friendly, want it now offer. Obviously other things like location, time on market, condition come into play. You should be able to get some initial feedback from your realtor as to how motivated the seller is...and obviously feedback after you offer. Good luck!

 

[CTTB78]

.... You should be able to get some initial feedback from your realtor as to how motivated the seller is...and obviously feedback after you offer. Good luck!

Take all the feedback you can get, but at the end the day, do what you think is right, it's your money.

 

[Sigmapolis]

Buying something out here for half the highest numbers you guys are talking about would be nice. I cannot wait to move back to Iowa sometimes.

 

[Gunnerclone]

Only over asking offers and the. offers are usually collected for 7 days then the buyers decide. Waiving inspection and appraisal are hot things that sellers are looking for in buyers in my area and anything inside of the loop in CBUS.

 

[ClonesFTW]

Sounds like the seller is coming to a harsh realization that they are under water.

 

[AttackOfTheClones]

So as the result of my wife getting loaded at our son's baseball game a couple weeks back while sitting next to a realtor I may be putting an offer in on a house in a few days. The house in question is being listed for just a bit under $400k but it was originally listed for $470k and that was just shy of 700 days ago so it's been sitting on the market a while. The zillow estimate is $382k but it's been a while since we bought our last house and I'm wondering what the rule thumb is if there even is one for making an offer on a house these days.

1) Zillow is typically inaccurate with those 'estimates'
2) Nat'l average for a listing has been around 65 days, so 700 days is absurd
3) If you make an offer, order a separate home inspection
4) In that price range, buyers expect stainless steel appliances; granite/quartz counters everywhere
5) Don't let the realtor create a lot of unnecessary 'drama' masking what little they do these days for a commission$
6) Initial listing that is over-priced by a realtor, then reduced a couple times--is the death knell for the seller. A red flag goes up with the internet buyers. The original price usually is maxed-out to cover their obnoxious commission.
7) 95% of buyers search Zillow and Trulia, Realtor.com-- for a home. The "MLS" is antiquated, useless, and has been replaced years ago by the internet. Don't let a realtor tell you otherwise.

 

[Cycsk]

Offer whatever you want to pay. It doesn't have to be an official in-writing offer. The thought of a seller being "offended" by an offer is rather ridiculous, especially for a house that has sat for-sale for 700 days.

Both agents have a vested interest in the highest selling price possible, so they cannot necessarily be "trusted" to do what is in your best interest as a buyer. Exceptions, of course, include @charterhouse.

 

[BillBrasky4Cy]

Offer whatever you want to pay. It doesn't have to be an official in-writing offer. The thought of a seller being "offended" by an offer is rather ridiculous, especially for a house that has sat for-sale for 700 days.

Both agents have a vested interest in the highest selling price possible, so they cannot necessarily be "trusted" to do what is in your best interest as a buyer. Exceptions, of course, include @charterhouse.

IMO it's rude to waste the sellers time with a low ball type offer. Offering under asking price is absolutely fine but their is a fine line when it does become insulting. A good agent will advise you on where a good starting point is at because their name is attached to it as well.

 

[Cycsk]

IMO it's rude to waste the sellers time with a low ball type offer. Offering under asking price is absolutely fine but their is a fine line when it does become insulting. A good agent will advise you on where a good starting point is at because their name is attached to it as well.

I'm not particularly concerned about wasting 60 seconds of a seller's time when they have had the house on the market for 60 million seconds!

Its business, not friendship. If they don't like the offer, they can just say "no," much like I am doing with their asking price.

 

[KCCLONE712]

I'm not particularly concerned about wasting 60 seconds of a seller's time when they have had the house on the market for 60 million seconds!

Its business, not friendship. If they don't like the offer, they can just say "no," much like I am doing with their asking price.

This, 100 percent! Who cares about offending the seller, you want the best price possible. Plus many people think you are buying at the top of the market. Offer 300K and see what their response is.

Edit: If you think this is your dream house and they are desperate, do some research and see how much they bought it for and if they ever put a second mortgage on it. You can get a good idea of what they owe. Or you could straight up ask them and put a contingency that when the deal closes that number is accurate.

 

[alarson]

I'm not particularly concerned about wasting 60 seconds of a seller's time when they have had the house on the market for 60 million seconds!

Its business, not friendship. If they don't like the offer, they can just say "no," much like I am doing with their asking price.

The only factor i could think of would be if the offer is too low, will that keep the seller from putting out a fair counter-offer because they don't think you're a serious buyer.

That being said, if the 'lowball' is your true 'this is what i'd buy it at, no more' then you dont really have to care about the counter-offer anyway.

 

[cyclonpediaJoe]

We just bought a house in Colorado Springs (actually 2 but that's a story for another day) and when you find the house you want (talking about CoSprings and whatever under-supplied markets), you make a full price offer and hope it holds. We're actually seeing houses coming off the MLS and going back on for more money. Guessing the initial flood of full price offers clued the agents in that more money could be had!

Others have said but so many variables with markets and supply/demand.

We bought a new house last year. We put above asking on several houses in WDSM and still got outbid. Super competitive at the price point we were at.

 

[khardbored]

When we were buying a house 3ish years ago, we saw one we liked and offered full asking price -- still didn't get it (someone else made a cash offer the same day, and ours needed a mortgage & 60 days to close).

So, I don't think there is 1 over-arching "rule of thumb."

 

[SpokaneCY]

1) Zillow is typically inaccurate with those 'estimates'
2) Nat'l average for a listing has been around 65 days, so 700 days is absurd
3) If you make an offer, order a separate home inspection
4) In that price range, buyers expect stainless steel appliances; granite/quartz counters everywhere
5) Don't let the realtor create a lot of unnecessary 'drama' masking what little they do these days for a commission$
6) Initial listing that is over-priced by a realtor, then reduced a couple times--is the death knell for the seller. A red flag goes up with the internet buyers. The original price usually is maxed-out to cover their obnoxious commission.
7) 95% of buyers search Zillow and Trulia, Realtor.com-- for a home. The "MLS" is antiquated, useless, and has been replaced years ago by the internet. Don't let a realtor tell you otherwise.

We recently bough in Colorado Springs and found Zillow and Realtor to be out-dated. Many homes we were interested in had offers, were under contract or otherwise sold but weren't reflected that way.

But average days on market was only 25-ish so probably hard to keep all that data current.

 

[SpokaneCY]

This, 100 percent! Who cares about offending the seller, you want the best price possible. Plus many people think you are buying at the top of the market. Offer 300K and see what their response is.

Edit: If you think this is your dream house and they are desperate, do some research and see how much they bought it for and if they ever put a second mortgage on it. You can get a good idea of what they owe. Or you could straight up ask them and put a contingency that when the deal closes that number is accurate.

When my folks sold their home a number of years ago they got a low-ball offer and my Dad told his agent to tell their agent to tell his clients to go f themselves.