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

Discussion in 'Real Estate' started by mramseyISU, Jul 3, 2019.

  1. mramseyISU

    mramseyISU Well-Known Member

    Nov 8, 2006
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    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.
     
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  2. Acylum

    Acylum Well-Known Member

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    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.
     
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  3. BCClone

    BCClone Well-Known Member

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    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.
     
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  4. twojman

    twojman Well-Known Member

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    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.
     
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  5. Dandy

    Dandy Well-Known Member

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    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.
     
  6. knowlesjam

    knowlesjam Well-Known Member

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    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!
     
  7. CTTB78

    CTTB78 Well-Known Member

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

    Sigmapolis Minister of Economy
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    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.
     
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  9. Gunnerclone

    Gunnerclone Well-Known Member

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    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.
     
  10. ClonesFTW

    ClonesFTW Well-Known Member
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    Sounds like the seller is coming to a harsh realization that they are under water.
     
  11. AttackOfTheClones

    AttackOfTheClones Active Member

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    #31 AttackOfTheClones, Jul 5, 2019
    Last edited: Jul 5, 2019
    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.
     
  12. Cycsk

    Cycsk Well-Known Member
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    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.
     
  13. BillBrasky4Cy

    BillBrasky4Cy Well-Known Member

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    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.
     
  14. Cycsk

    Cycsk Well-Known Member
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    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.
     
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  15. KCCLONE712

    KCCLONE712 Active Member

    Jun 29, 2011
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    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.
     
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  16. alarson

    alarson Well-Known Member

    Mar 15, 2006
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    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.
     
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  17. cyclonpediaJoe

    cyclonpediaJoe Active Member

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    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.
     
  18. khardbored

    khardbored Well-Known Member

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    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."
     
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  19. SpokaneCY

    SpokaneCY Well-Known Member
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    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.
     
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  20. SpokaneCY

    SpokaneCY Well-Known Member
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    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.
     

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