With all the discussion about the local market being a buyer's market, we have developed the mentality that all offers should be 10% below asking price. I have had 3 or 4 buyers in the last month state that very idea to me. They state my mom, my dad or my_________ says that I should offer at least 10% below what the asking price is. This is usually said in a questioning manner, however, the intent is the same. I always respond that each home should be considered on it own merits with regard to price. If the home is 10% above the market, then yes, by all means let's make an offer 10% below the listed price. The best way to determine the actual value of any home is to look at recent sales and not arbitrarily just write an offer based on this belief.
Our buyers obviously make all the final calls on where these offers are written at. Each listing agent and seller have different ideas on how they priced the home. Did they price it high knowing that they will get slammed on the price or did they price is closer to their actual target to maximize exposure? The key to the whole process is managing these different ideas and getting offer that our sellers will at least make a good counter offer.
I guess that ultimately each buyer is trying to figure out in their mind, the price they can purchase a given home for. In today's market, the agents that finds the key to this relationship will be successful.
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