Views: 586
US
California
Nearby States
- Alaska
- Alabama
- Arkansas
- American Samoa
- Arizona
- California
- Colorado
- Connecticut
- Washington D.C.
- Delaware
- Florida
- Georgia
- Guam
- Hawaii
- Iowa
- Idaho
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Maryland
- Maine
- Michigan
- Minnesota
- Missouri
- Northern Mariana Islands
- Mississippi
- Montana
- North Carolina
- North Dakota
- Nebraska
- New Hampshire
- New Jersey
- New Mexico
- Nevada
- New York
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Virgin Islands
- Vermont
- Washington
- Wisconsin
- West Virginia
- Wyoming
Don't see it?

Find:
Fullerton
Nearby Cities
Don't see it?

Find:
Neighborhood
Nearby Neighborhoods
Don't see it?

Find:

How much lower than asking price should an offer be (reasonable amount, of course)?

Contributions: 1

Q&A

:1

View full profile

I'm just wondering how much lower can someone offer since, clearly, homes start out at higher asking prices than worth.

Flag content

October 23 - Fullerton

RSS

Answers (7)

Karen Parsons Fiddler, "Karen Fiddler"
Contributions: 170

Karen Parsons Fiddler, "Karen Fiddler"

Real Estate Agent

View my 3 listings

Contributions: 170

Q&A

:166
Disc

:4

View full profile

Hi,

Every situation is different, which is why you need to work with a Realtor who will do their homework. We need to check comps to determine where the list price is in comparison to value. If it's a seller with equity, they might have listed it a bit higher than they are willing to take....but bank-owned and short sales are being listed artificially low to generate lots of offers quickly.

I also try and speak to the listing agent personally to see if I can get a feel for the situation...that helps us decide what to offer as well. But there is no formula to use in every situation. Would be great if there were :)

Karen

Karen Fiddler
Broker-Associate

Flag content

October 26

Robert and Yoko Walker, "Orangecrest"
Contributions: 842

Robert and Yoko Walker, "Orangecrest"

Riverside, CA

Real Estate Agent

Contributions: 842

Q&A

:679
Disc

:24
Photos

:139

View full profile

Wow! Really? Where is this in Fullerton? Everywhere else in Orange, Riverside and Los Angeles Counties, they are coming in well above list price.

I have been in so many bidding wars, it isn't even funny. When I come across a buyer that wants to low ball, I refer it out. Haven't got any referrals back yet.

Another thing I do is also let the buyer submit a few lowball offers after I tell them what is really going on. After a few offers being denied, and few buyers actually calling the listing agent to confirm what I am telling them is true, they start to listen and then either get the house or come very close to getting it.

You are competing against all cash, foreign buyers. They are coming in above list price and are closing in less than two weeks, in most cases. Asking for nothing in return: no home warranty, repairs, closing cost, nothing.

I just represented a buyer from China that came $50K above list price on a $2.5M dollar home. All cash... They are at all levels... From $30K/$40K homes in Banning to the multi-million dollar homes on the coast.

Their motive isn't the tax credit. They are taking advantage of the low prices and the fact that the dollar is down against their currency. When both recover, housing and the dollar, they stand to profit big time.

You can always submit your offer at any price, just be prepared for a long ride. You never know though, you may find that one that the investors don't know about, but more than likely one they don't want which would mean a bad investment possibly?.

Bid at what you feel the house is worth and at the top of what you are willing to say I would have never paid that much anyhow. Most banks will not counter, especially if you are nowhere near what they expect to get for the home.

Good luck...

Flag content

October 25

sunnyview
Contributions: 10842

sunnyview

Contributions: 10842

Q&A

:6371
Disc

:4449
Photos

:22

Zillow All-Star

Since January 2009

View full profile

I think you have to look at the value of the house to decide what to offer. I have made offers on houses that are 15% below the list price and I have made offers that are only 2-3% below list price. It really depends on the area, the current local market and the condition of the house. Your offer should be dependent on the recently sold comps in the area and the value of the house to you. If you are working with an agent, you can ask them for help in structuring an offer and gathering information. Before I make an offer, I always ask for the list of current pending listings, similar recently solds and the general days on market trend for the area to make sure that I am finding good value in my market. Your agent can help you do that. From there, what you choose to offer is your decision.

Flag content

October 25

Mack McCoy
Contributions: 228

Mack McCoy

Seattle WA

Real Estate Agent

View my 1 listings

Contributions: 228

Q&A

:128
Disc

:43
Photos

:57

Zillow All-Star

Since October 2009

View full profile

A reasonable amount!

Realistically, you can offer whatever you want.

As a practical matter, it makes more sense to learn enough about the local market that you can determine what this particular house is worth; with that knowledge in hand, determine what it's worth to YOU.

As Tony Veltri points out below - in at least one market, you can come in low and be lost in the crowd.

My personal feeling is that you should be careful what you offer - they might accept it!

Flag content

October 25

Tony Veltri, "Veltri Homes"
Contributions: 112

Tony Veltri, "Veltri Homes"

Real Estate Agent

Contributions: 112

Q&A

:85
Disc

:24
Photos

:3

View full profile

It is very comon here in North OC to have homes listed BELOW their market price. This drives interest up and in turn, more offers - creating the classic bidding-war. REO, Short Sale and even Equity Sellers are using this tactic to attract as much traffic and offers as possible. Please don't blindly assume that the home listed at $425,000 would attract a "fair" offer at $415,000. It's not always the case and my be detrimental to your goal of buying that home in getting back a "rejected" offer. Have your Agent guide you - they will. Just this week closed a home listed at $389,000 and we needed to go to $435,000 and "clean" to get it. So be careful.

Good luck in your search and if you would like any help in North Orange County take a look at my profile, credentials and contact information - I'm always availalble.

Flag content

October 24

nealadler
Contributions: 163

nealadler

Real Estate Agent

View my 2 listings

Contributions: 163

Q&A

:126
Disc

:18
Photos

:19

Zillow All-Star

Since October 2009

View full profile

Depending on how much the property may be worth. If it's priced properly and there are not multiple offers I usually recommend to my buyers coming in within 3-7% of the listing price.

Flag content

October 23

Ofe Polack, "Ofe Polack"
Contributions: 148

Ofe Polack, "Ofe Polack"

Real Estate Agent

View my 6 listings

Contributions: 148

Q&A

:84
Disc

:8
Photos

:56

Zillow All-Star

Since October 2009

View full profile

This is where buyer agents come in so handy, they study the market, look at comp sales and what is active on the market in order to provide you with a price range for the property you want to purchase. Beside the actual condition of the property impacts on the offer as well as the location.
If the property is bank-owned or short sale, you can go a bit lower than you can go with a regular seller, as a rule.
Oftentimes, you can go too low and turn the seller off, thinking that the buyer is not serious. Your judgement with the assistance of buyer agent will determine how low to go. Good luck!

Flag content

October 23

Tools

Create an Email Alert

This alert is for the following:

How often would you like the alert emailed?

Partner Tools

Nearby States

Nearby Cities

Nearby Neighborhoods

How much lower than asking price should an offer be (reasonable amount, of course)?

Contributions: 1

Main Image

Answers (7)

Real Estate Agent

Contributions: 170

Real Estate Agent

Contributions: 842

Contributions: 10842

Zillow All-Star

Real Estate Agent

Contributions: 228

Zillow All-Star

Real Estate Agent

Contributions: 112

Real Estate Agent

Contributions: 163

Zillow All-Star

Real Estate Agent

Contributions: 148

Zillow All-Star

Have a question? Ask it here.

Active Fullerton Real Estate Agents

Related Questions

Question How much lower than asking price should an offer be (reasonable amount, of course)?

Question When to make an offer?

Related Articles about Buying Process

Guide Real Estate Buyer's Closing Costs

Guide List of Closing Costs and Fees

Guide You've Opened Escrow

Guide Home Buying One Step at a Time

Guide A Buyer's Guide to Making the Right Choice

Need a Mortgage?

Get instant mortgage quotes

Be A Good Neighbor