The Negotiator

[spaceman]

the facts:
we found a house we love
it needs some work, albeit minor(cosmetic,preferential)
house has been on the market since august.
i feel its worth close to his asking price, but that figure is more than we want to spend.
187,500 is the asking price.
where would you open your offer?
seller claims to be flexible...(dont they all)
is an offer of 163 an insult?

 

[l Xes l]

make sure to have the gun polished

 

[spaceman]

Originally posted by: krnxpride83
make sure to have the gun polished

what would you open @?

 

[Jack Ryan]

Originally posted by: ncircle

Originally posted by: krnxpride83
make sure to have the gun polished

what would you open @?

It is much easier for him to make ridiculous comments than answer the question.

Not knowing the market you are in, etc... If the house has been on the market since august, then I dont see a problem with 163K. They could either not be in a rush and waiting for the right price (which 163 is not) or they are itching to sell because it has been taking so long (where 163 may be a good starting point).

163 is rather low, but it all depends on the market.

 

[Lonyo]

What's the market been like since August and has the price changed since then?
If they kept the price the same and the overall market has gone up, then offering a fair bit lower than the askign price might be an insult, but if the market has stayed flat then it's not so bad.
If they've already reduced the asking price since August and the market has stayed flat/gone up, then it might also be an insult.


Also, is this a second home for them? How much do they need to sell it? If they don't need to sell, lowballing may not get you very far, but if they are getting desparate to sell they may be more willing to accept a low offer.

 

[spaceman]

Originally posted by: Lonyo
What's the market been like since August and has the price changed since then?
If they kept the price the same and the overall market has gone up, then offering a fair bit lower than the askign price might be an insult, but if the market has stayed flat then it's not so bad.
If they've already reduced the asking price since August and the market has stayed flat/gone up, then it might also be an insult.


Also, is this a second home for them? How much do they need to sell it? If they don't need to sell, lowballing may not get you very far, but if they are getting desparate to sell they may be more willing to accept a low offer.

market is slowing/slow
seen 210k houses sell price 180k
he is one person, divorced,kids in college(primary reason for selling or so he says) and basically living in a section of the house.
i should also mention this is a for sale by owner.
his initial price in august was 210k...hes dropped it to 187.5 since.

 

[spaceman]

okay.
i know what he owes not that its relevant.
up for final tips.

 

[Parkre]

I am not an expert, but from my exprience...

You should offer 10-15% lower then asking price
Wait for a counter offer...
Then find something that needs fixin or replacing (Central Air, water heater, drooping ceiling, etc)... for about the difference of what you actually want to pay (which I hope is higher than 163) and tell them you buy it for their counter offer if they fix/replace whatever first.



My experience is limited only from the fact that I have not actually bought a house yet, but everyone (5 different friends) have just recently bought a house in past t few months. This is what most of them did.

My first friend offer 15% under asking price and he happened to get it. It was new. He got it for about 10% under average.
My second friend just haggled with the owner, cozied up to him, until he got the attic fixed (drooping ceiling)
Third wanted to get his for under a hundred. The owners countered his offer at 104. He told him he would buy it if they replaced the central air unit and duct work (and few other things) and the owners agreed. Which is worth a few grand right there.
fourth and fifth just kinda haggled and looked at lots and lots of houses.

At least I will be ready when I need to buy a house ... in a few years... stupid college...