How Much Below the Listing Price Can a Buyer Offer?
March 7, 2012
Prospective buyers often ask their agent how low can they offer. The answer, perhaps, depends.
First, how much do you want the property? If you have been looking a long time and finally find a property that pretty well meets your needs and wants, it is wise to put in a really strong offer. You know that the seller would like to receive the listed price. Second, you have asked your agent to show you the selling prices of comparable properties. You may even have checked the property out on Zillow. This information should give you some idea as to the reasonableness of the listed price.
Thirdly, you could have your agent check the percentage of the listed price that successful sales have produced. I subscribe to a news report called Housing Pulse and it references the average sales to listing price ratio in ten regions of the U.S. The February update cited these percentages: REO damaged/97%; REO move in ready/99%; Short Sale/96%; Non Distressed/96%. Surprised? Many potential buyers have the idea that selling prices are 20% less than asking prices. This data indicates otherwise.
So back to the first criteria. How much would you like to own a particular property? Structure your offer accordingly.
Prospective buyers often ask their agent how low can they offer. The answer, perhaps, depends.
First, how much do you want the property? If you have been looking a long time and finally find a property that pretty well meets your needs and wants, it is wise to put in a really strong offer. You know that the seller would like to receive the listed price. Second, you have asked your agent to show you the selling prices of comparable properties. You may even have checked the property out on Zillow. This information should give you some idea as to the reasonableness of the listed price.
Thirdly, you could have your agent check the percentage of the listed price that successful sales have produced. I subscribe to a news report called Housing Pulse and it references the average sales to listing price ratio in ten regions of the U.S. The February update cited these percentages: REO damaged/97%; REO move in ready/99%; Short Sale/96%; Non Distressed/96%. Surprised? Many potential buyers have the idea that selling prices are 20% less than asking prices. This data indicates otherwise.
So back to the first criteria. How much would you like to own a particular property? Structure your offer accordingly.
posted by shirley harry at 8:07 AM
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