How do you go about negotiating a price on a house?

I found a house we like and the asking price is $550K. These days no one expects to get their asking price, but how much do I offer? I was told to expect to go back and forth with prices a couple of times. I hated doing this with my car and now with a house there is even more at stake!!

Message edited 3/30/2009 9:16:02 AM.

Re: How do you go about negotiating a price on a house?

Get some comps from your REA to compare the house and start from their. See how long the house you are looking at has been on the market. I think if the house has been sitting you have a better chance of being a little more aggressive as opposed to someone who just put their house on the market.

When we bought our first home we negotiated $15K less than the price and that was back in 2004. Then when we bought our current home which was in 2007 we paid asking price. We felt that the house was priced very fair for the area we were looking in. It was on the market for a month and our bid was being submitted with 3 others and their was no negotiating (in NJ things are a little different). We lucked out and got the house.

Re: How do you go about negotiating a price on a house?

Honestly, it depends on the comps. We paid asking for the house we will be closing on this week because it was priced right. I don't think sellers should be punished for pricing their homes fairly.

Re: How do you go about negotiating a price on a house?

Definitely get the comps, that will help you to determine a fair price.
Over the past few months, new houses that are coming on the market are being more fairly priced b/c of the stressed market. REAs (for the seler) usually instruct their clients to not start out so high in price (then the house is worth) b/c it will only end up sitting there for months and then that looks bad too.
So in turn, homes are being listed closer to market value.
If you're bidding on a house that's been sitting on the market for a while, there's a better chance you can get the house much less, otherwise the more recent homes on the market you may pay close to the asking price, if not the full amount.
HTH...Good luck!

Re: How do you go about negotiating a price on a house?

Re: How do you go about negotiating a price on a house?

yes it depends on the comps for sure; but we put an offer in on a house and have been ogng back and forth still. the house was listed in february and they are down, so far, 55,000. we are trying to get it down to 73,000 lower or somewhere in between. it also depends on how much they need to sell the house; whether they have gotten any other offers; how much work it needs, etc. good luck!!!

Re: How do you go about negotiating a price on a house?

Thanks so much for the responses, and for the well wishes.
Good luck to you as well, CoutureMama.

Re: How do you go about negotiating a price on a house?

I wouldn't assume every house is overpriced. We are in contract on a house now and we did bid way under the asking because it was priced high. I had comps to support my argument and we ended up getting the house for 21% below asking. BUT there was a house around the corner that I really liked and if we had bid on that one, we would have gone in only about 5% under asking because we felt it was priced fairly. And btw, that house sold after being on the market only a few weeks! That's what happens when a house is priced right!
How long has your house been on the market? What are comps telling you? (And to get the most accurate representation of the current market, I'd only go back about three months for comps.)
Good luck!

Message edited 3/30/2009 3:00:31 PM.

Re: How do you go about negotiating a price on a house?

Re: How do you go about negotiating a price on a house?

We are currently in contract for a house we bid Waaayyyyyyyyyyyy below asking. We bid what we could afford and what we felt the house was worth. It just worked out for us We got a FANTASTIC deal! Just bid what you think the house is worth.

Re: How do you go about negotiating a price on a house?

i think we started offering at 10-12% below asking price and went from there