Making an offer...

smckaybiz · Posted: Tue Apr 14, 2009 5:15 pm Post subject: Making an offer...

Hello all,

My wife and I are getting ready to take the plunge and put an offer in on a house that we really like. We are going to view it one more time to make certain but we are pretty sure that is the house we want. My question is this:

Is there a good starting point in which to put an offer on a house in terms of percentage of the asking price? The house we are looking at is listed at 159900 and I definately don't want to pay more than 140000 for it. Since this is 20K less than the asking price am I best to start my offer at 120000 hoping we can meet in the middle? I've heard some say that 80% of the asking price is a good start.

Just looking for any advice.

Thanks

savior70 · Posted: Wed Apr 15, 2009 6:15 am Post subject:

Hi

It's difficult to say what percentage of the asking price would be a good starting point to put an offer on a house. A market analysis can be very handy in this situation. Through the analysis you will get to know the average ratio of the actual asking price to the price they have been sold for. This will give you a fair idea of what other people have been doing in that area.

gmakerley · Posted: Wed Apr 15, 2009 7:43 am Post subject:

scott, are you working with a realtor? that's a perfect question for a realtor to answer. my gut-level reaction to your question - bidding $120K when you're willing to pay $140K - is that your opening bid would need to be higher, so as to justify to the seller that you're serious. how much higher? it's not so easy to say, because i certainly don't know the market you're in. if prices are moderately stable in that area, then the closer you are to the price you wish to pay, the better. find out, if you can, what comparable properties have sold for recently, and that should be a pretty good guide as to the outcome.

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