Asking Price vs offer

Do most people expect to get their asking price, or do they expect to negotiate...

We are not at this point yet,but hypothetically speaking, if a house (ranch) was listed at 239,000...and it had some new renovations(kitchen and bathroom), but was very tiny (only 2 bedrooms, and no dining room, and just barely room for an eik)...what would we offer if we were to place an offer?

I do know the house next door (expanded cape w/ garage), which is MUCH LARGER sold for just under 300,000

I know our real estate agent has to look for comps in the area, and that will help us decide what to offer, but like I said, we are not at this point yet,but are curious...

Re: Asking Price vs offer

comps are the best and most accurate way to go.

Re: Asking Price vs offer

i would probably start around 200,000 and go from there. we started our offers at about 30K less than asking.

Re: Asking Price vs offer

Honestly, so much depends on the seller -- their circumstances, their motivation. What a seller will accept depends on what THEY think their home is worth (realistic or not) and how motivated they are to sell. Someone who is being transferred out of state or who is financially stressed is going to be a lot more flexible than a seller who doesn't need to sell, but wants to see what they can get.

Comps can help you determine whether the house is fairly priced and how much you believe it's worth. But there's no real "formula" to making an offer because you can't generalize and say "always start x% below asking." Sometimes a house is priced right! Sometimes a house is very overpriced.

But also, keep in mind that -- comps aside -- you as a buyer determine what a house is worth to YOU. If you plan on selling again in the near future, then of course resale value is a concern. But if this is going to a be a long-term home for you, then what really matters is what you want to spend. I know that I technically probably "overpaid" a little bit for my house in 2008, but we made a conscious and informed decision to do so. It's a forever home for us and we love it. Sometimes buying a home is about more than dollars and cents, especially if you are a buyer who will there with your family (as opposed to an investor or a builder). Just make sure you have all of the info (good comps from a knowledgeable agent) and consider everything (especially things that can't be changed -- lot size, layout, location) when buying.

Re: Asking Price vs offer

Re: Asking Price vs offer