Need Advice on Putting in an Offer

DH and I have found a house and would like to put in an offer. We feel that the house is overpriced by about $30K (this is based on area comps and things that need to be updated in the house) and would be willing to pay up to the amount we feel the house is worth (but of course wouldn't mind getting it for less than that ).

How much lower should we start our first offer with? We were thinking about going $45K under asking to give us some wiggle room but we're not sure if this is too low (insult the sellers) or too high (not enough wiggle room). $45K would be roughly 10% below asking price.

Re: Need Advice on Putting in an Offer

I wouldn't worry about insulting a seller in this market, especially if the house is overpriced. I think a 10% offer from ask, is fair and I say go for it and don't be bullied by a broker telling you its to low. Also, remember that in this market you are in the driver's seat and if its not this house, there will definitely be another.

Re: Need Advice on Putting in an Offer

I definately thinking bidding 10% lower then asking is fine especially in this market. Some people are still putting their houses up for ridiculous pricing thinking they will get it. If the owner's don't want to entertain your offer, it is their loss. The house will just sit longer.

Good luck

Re: Need Advice on Putting in an Offer

i recently saw suze orman say to offer 10-15% below asking in this market.... I agree with the others- 10% below asking is fine and don't be bullied by the Real Estate Agents- their commish is contingent upon what the price is- so of course their motivation is to keep it high.

Re: Need Advice on Putting in an Offer

10% is very acceptable. They can always counter offer. Go for it. You have nothing to lose! Good Luck

Re: Need Advice on Putting in an Offer

I think it definetly a smart thing to do in todays market. I have been look myself and even though people are expecting more for there house doesnt mean thats what its worth. I know someone who sold there house in Merrick and after selling it the bank re assested the house for a almost 40k than what it was sold for because of the decress in the market.

Re: Need Advice on Putting in an Offer

10% is good - especially since you would like it for at least $30k below asking price (that gives you some wiggle room to negociate).

They may accept your initial offer - depending on what they think their house is worth and how motivated they are to sell! Good luck!

Re: Need Advice on Putting in an Offer

Thanks everyone! I think we're going to offer 10% below asking and go from there.

Re: Need Advice on Putting in an Offer

In this market, do not be concerned about insulting the sellers. They'll get over it. There are so many houses on the market right now, they should be glad to be receiving an offer at all. There are many homes that have been on the market for over a year.

We initially bid around 16% lower than asking...and ended up getting the house for 13% less than asking.

Good luck!

Re: Need Advice on Putting in an Offer

We were in a similar situation - the place we bought needed a lot of work but the bones of it was great and most of the work was cosmetic. I originally had reservations about offering 10% below asking as we were somewhat attached already. But, we were pleasantly shocked when the sellers accepted immediately. Although my DH now thinks we should have offered 15% below asking and settled at 12% below.

Re: Need Advice on Putting in an Offer