Home sales are slow which means that
buyers will likely be able to negotiate on the price of the home they hope to purchase. All of my clients that have ears know this, and thus I often find myself answering the question of "
how much do you think we could negotiate on the price?"
I always have some thoughts on how much we may be able to negotiate, often influenced by:- any incentives being offered by the seller, such as closing cost assistance
- how long the property has been on the market
- how recently, if at all, a price reduction has been made
- any context created by the seller's Realtor
- list / sale ratios in our market or in the neighborhood
- how the price compares to market value
But even after examining and discussing all of these factors,
it's impossible to know the lowest price that a seller will accept for their home. As I often tell my clients,
the only way we're going to know is if we make the first offer. The seller's response to that first offer is often very insightful, for example:
- If a house is listed at $235k and we offer $220k, we'll know a lot based on whether the seller responds with $233k or $228k.
- If a house is listed at $345k and we offer $300k, we'll know a lot based on whether the seller responds with $342k or $330k.
But again,
the only way we're going to get to having that insight is if the (prospective) buyer takes that first step of making the offer. If you have found a house that would work well for you, certainly there is a
price at which you would definitely buy the home, so why not
make the offer and see what happens!
Recent Articles:
