Profile picture for user339928

Making the first offer?

When making the first offer what is a reasonable amount to offer under the asking price. I know this will very with allot of factors. But does anyone know of a resource that keeps stats on what homes sold for verses the asking price?  
  • April 25 2012 - Lawrenceburg
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Answers (7)

Profile picture for NinaHarris
Your best resource would come by signing a contract with a buyers agent. A buyers agent would be able to pull most recent sales for comparable homes and advise you of an offering price. The way it works.....everybody works in the best interest of the seller. In a buyer broker relationship you become the client and the agent works in your best interest.
  • April 25 2012
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The answer is a reasonable offer based on the VALUE of the property not the list or asking price.  Asking price could be way over what the home is worth or it could be very reasonable for the area.
 
Sellers can ask whatever they want, but they should only expect what the property is worth.  Buyers can offer whatever they want, but they should expect to pay what the property is worth.

The key is an agreeable price that works for both the Buyer and Seller.
  • April 25 2012
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You really should make sure you have a smart and hard-working buyer's Realtor representing you so you don't bid too low and miss out on a home you love or so you don't overbid for a property.There are several methods for determining value.  I like to use at least two which will give you two estimates of value.  You should note that there are many factors that can increase or decrease a property's value even when you the buyer don't place a positive or negative value on that attribute.  For example, you may not care that a home backs up to a relatively main street, but the overall local market dictates about a 10% lower price for such a property.  Remember to always keep in mind resale value (when you may sell at some point in the future) versus what you love now that may not appeal to a wide range of buyers in the future.
  • April 25 2012
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Profile picture for Matt Hiatt
You need to find a good agent that knows your market. Here in Phoenix, if you really want a home that is not over priced, you need to offer the asking price or above because of our shortage of homes and multiple offers. A year ago, you could offer less than asking price, but not now (at least in my market).
  • April 25 2012
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There is no magic number or formula. Make an informed decision when purchasing. Rule number one is affordability. Factor in you other costs, utilities, insurance, and other variable costs. Just make sure the mortgage works for you now and the long term. Also make sure you are buying at the right price. I read once , if all of your offers are accepted then you probably paid too much.
  • April 25 2012
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Profile picture for Ofe Polack
That is one of the things that your buyer agent can help you with.
  • April 25 2012
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It all depends on your area..consult with a realtor that is also a buyers agent.
  • April 25 2012
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