Buying Home Negotiation: percent discount from list price
I am checking home prices. I am wondering on average how many percent down i can negotiate. what are the some arguments to use for supporting low offer?
The short answer is: it depends. Okay, I know it’s useless :) so here you go - Redfin has a tool that collects data from the past. You can simply go there and checkout the listing price and sold price of a specific zip code. Just google Redfin data research, and you should find it easily. It’s no secret. My agent showed me this tool. And it’s amazing.
“some arguments to use for supporting low offer?” : “look at my TC”. Which reminds me: TC?
It depends where you live and if there is more supply or more demand. In Bay Area in general, people offers above asking price because there are more buyers than houses in the market. If you under offer, you won’t get the house. Looks like everybody knows it and they are ok been rip-off.
That is only true in parts of the Bay Area. Houses in Sonoma County, for example, are not going above list.
That is true but I bet OP is not trying to go Sonoma.
In the suburbs of Seattle, you can generally only offer a minimum of +10% if you want the house. If they’re asking for $500k, then you better offer at least $550k because a dozen other people probably will.
Old news, it's not spring of 2018 now. Only 10% of houses in Seattle receive multiple offers according to Redfin.
That’s why I said “suburbs of Seattle.” Who on earth would want to live with those self-defeating lunatics within Seattle city limits? Next thing they’re gonna tax is breathing!
List price is an arbitrary number, sometimes above market, sometimes below. It is just a marketing strategy. You don’t have to justify your offer.
If the property is good you will need to offer about 5% above asking price to start :)
You can actually just offer the same asking price and then when they accept it, hire a good inspector to get all the flaws that needs to be fixed including uneven slabs of flooring, leaking faucet, clogged drainage, missing screws on cabinet hinges, old windows frosting, hole on the wall,..anything you can deduct from the price. When I bought my house it was newly renovated but the inspector I hired is so good we found a lot of flaws.
Thanks for the all good ideas. It does not make much sense to me offering more than what they ask. I am searching home in NY/NJ area. I am even seeing prices that goes down by itself. Some homes are listed in last 2/3 months.
If your life circumstances permit it, wait until the winter. You can get away with a low-ball offer if the alternative for the seller is waiting ~4 months to close a better deal
“That’s all I want to offer.”