How much under ask did you offer?

posted 4 months ago in Home
Post # 16
Member
156 posts
Blushing bee
  • Wedding: June 2016 - Bell Tower on 34th

tillymac :  my hubby and I bought our first house in Houston and initially offered $25k under asking (it was slightly overpriced at $349k and needed a little work, we put about $35k into it and sold it for a little profit). We ended up settling at $20k under asking.  We then had to sell that house one year later due to being relocated to Los Angeles.  Now that was a smack to the head.  We saw a our current house in LA and put in an offer $30k over asking the next day. We won and now own the house but that was nuts!  We were competing against so many people.  We paid double the cost of the Houston house for 1,500 sq ft less in a comparable type of area…  that was painful.  I just try not to think about it lol.  At least the LA house is completely updated and super modern.

regarding the info you provided, I might go in a little lower than $235k but it depends on how well the list price is based on comps and if you have any competition. I’m also a typical low price offer person (except in LA because if I followed that strategy, I’d still be in temp living). You can also always just offer if there’s no other buyer and just see what they say.  If there is a negative response, and they just don’t counter, you can always offer higher again if you feel it is worth it.

Good luck!!!

Post # 17
Member
557 posts
Busy bee

20%. They were desperate and ready to fire sell. Sellers always ask 20% because most know you’ll underbid by 20%. works well for all.

Post # 18
Member
733 posts
Busy bee

The houses in our area tend to go for 5-10% under asking. I haven’t known anyone to pay above asking. We got lucky and bought our house at an auction & got it for more than 50% less than what it would tropically cost. There’s still quite a few foreclosures here but they are typically on starter homes. 

Post # 19
Member
9256 posts
Buzzing Beekeeper
  • Wedding: August 2013 - Rocky Mountains USA

tillymac :  it entirely depends on what the market is like where you live. I live in a fairly small town with a limited market in the area I wanted to live, so I made a full price offer the day after the house went on the market. It wasn’t overpriced, so it was the right call.

You can make your offer contingent on appraisal value (which is smart because banks won’t lend more than the appraised value anyway), so if the appraisal comes back lower, you just pay that value. That only works if your market isn’t super competitive. In some places, houses are being bought sight unseen with cash for 30-50k over asking price. 

Post # 21
Member
1404 posts
Bumble bee

we offered 10% less than asking on a house and lost it lol some people don’t want to negotiate, after being declined we offered full asking and the owner said he would never sell to us, he didn’t like that we tried to rip him off on a house that he was selling under market anyway.

on another house we offered 10% over, it sold for 25% over

Post # 22
Member
4240 posts
Honey bee

tillymac :  anything less than asking would have been laughed at in our market. Asking was $329,900 we offered $345,600, and ended up at $340,000 with sellers kicking in $4,400 for closing costs (which allowed is to keep some cash on hand for a couple urgent repairs).

Post # 23
Member
7820 posts
Bumble Beekeeper

What to offer totally depends on your market. I bought my first house in a slow market and negotiated more than $10k off. I sold that house for $5k more than what I was asking. It all just depends. Sounds like it’s slow there for now, so you could offer less and see what happens. If you remember the house from months ago, it could have been relisted more recently because it didn’t sell then, which would make your position as a buyer even better. Good luck!

Post # 24
Member
1096 posts
Bumble bee
  • Wedding: October 2017

It’s a hot market here so things go for like 50-70k above asking. 

Post # 25
Member
199 posts
Blushing bee

we offered 200k under ask. ended up getting just short of 100k under ask with no mortgage contingency.

Post # 26
Member
519 posts
Busy bee

Good luck! This process has been eye opening and a bit stressful!

We actually put in an offer on our first home last Tuesday (less than a week ago). We knew that there had been 2 offers on the house already that were rejected (one due to timing and one due to being too low). We offered the asking price- we wouldn’t have gotten the house for much less. We did ask that they include washer/dryer/fridge in the sale (aren’t in great condition but it means I don’t have to run out before we move in!)

We signed contracts last week and home inspection is the 27th.

It’s definitely a seller’s market around here (house was on the market for less than 2 weeks)

Post # 27
Member
6166 posts
Bee Keeper
  • Wedding: September 2012

It really all depends on your specific market. Because real estate varies so much from place to place, there’s really not hard and fast rule of what to offer.

We bought our house 9 years ago, right before the housing bubble popped. We bought it FSBO for $340,000.

It was origionally listed at $420,000 with a realtor. We went to see it the first time when it dropped to $399,000 – but at the time felt it was out of our budget. The listing expired so after a couple of months we contacted to sellers to see if they were still interested. They were, so we went to see it again. They were asking $350,000 and while we were seriously considering doing it, we’d already agreed that $340,000 was our max. DH went to lunch with the seller (a sweet couple with young kids trying to move out of state) and told him that we loved the house but we just couldn’t go over $340k. They ended up agreeing to that.

Currently as it is now, most homes in my area are selling about $53,000 above tax value – while lots/land are selling pretty much at appraised price. That’s awesome for us, because that basically puts us right at our origional purchase price but with quite a bit of equity in our home – and we’ve done several cash updates.

We actually just purchased a lot to build our dream home, and it was a quite a process. Out of nowhere the last few lots in the neighborhood we wanted started selling fast. The one we wanted went under contract before we could put an offer it, but then the offer fell through. Their agent contacted ours to see if we were still interested and we made a full price offer before they ever even offically listed it back on the MLS. The greedy sellers countered our full price offer. We ended up settling on $115k – which is basically exactly what it will appraise at, and is 15k under tax value.

Post # 28
Member
1506 posts
Bumble bee
  • Wedding: October 2017

tillymac :  We offered 8K under asking. They countered with 5K under asking. We accepted. After Inspection there was an adjustment, we paid 8K under asking. They also covered all closing costs.

Post # 29
Member
677 posts
Busy bee
  • Wedding: September 2013

Our house was listed at 290k and we offered 270k and seller ultimately accepted.  What they were asking was pretty on point with other homes in the neighborhood, but the house had been on the market for a while and we knew that the owners had already moved down to Florida and had very little left on their mortgage and were just ready to unload it.  The main reason we offered so much lower is because the Roof is 15 years old and will eventually need to be replaced, probably while we are still living here and also because the kitchen needs to be updated (it was updated by previous owners, but very cheaply and doesn’t look great).  

Post # 30
Member
1310 posts
Bumble bee
  • Wedding: May 2017

tillymac :  We offered 15k lower than the asking price, they countered 2k lower than the asking price. We went up 5k to 10k lower than the price, and told our agent to tell the seller he needed to give us a better counter than before or we were walking. He countered at 5k lower than his original listing price, and we accepted. It helped that we had our realtor negotiate that we wouldn’t ask for any closing costs or inspection costs, because the relocation company with DH’s job was paying all of that for us. If we hadn’t negotiated this, we probably would have paid full price for the house or any comparable homes.

But, like others have said it all depends on what the market looks like in your area. The area we just moved to is a buyers market right now. The house we bought had been on and off the market for the past year, and was a house that the seller was flipping and he basically sunk too much money into it and hadn’t accepted anything because he was upside down on it. Had the house only been on the market a few days, we would have offered more and accepted any counter they threw at us.

The area we moved from is a major sellers market right now. Most homes are going for asking price within 48 hours, and some get into bidding wars and go higer than asking price.  

If you’re working with a realtor, they should be able to give you a good idea of how much you should offer. Ours was great at negotiating for us!

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