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So How Much Will The Sellers Take?

If you are thinking about making an offer on a house you like, chances are you are planning to make an offer for something less than the asking price. And chances are you'd like some idea of what the magic number might be - the absolute least amount of money the seller will take.

Well, if you are thinking about asking the listing agent for this little piece of information, save your breath! If she knows, she can't tell you.

But guess what! She doesn't know. She doesn't have a clue.

And guess what else! The sellers don't know either. They won't have a clue of what their bottom line is until they are faced with an offer and go back and forth a few times with the prospective buyers.

So if you are wondering what the sellers will take, make an offer. If your number is too low, the worst thing that can happen is that they will reject your it. In this market, however, they are more likely to make a counter-offer. After a little give and take, you will get your answer, and if you can reach a meeting of the minds, you'll have a new house.

One of the great things about buying in a buyer's market is that you can negotiate, and most sellers are willing to do a little horse trading to sell their homes.

If you wait until the market turns around, you could find yourself having to compete with other buyers who all want your house!

Posted by Patricia Kennedy on 03/15/2009 10:33 PM

Comments (24)

Getting the Lowest Price in the Home Buying Channel

negotiating, washignton dc real estate, patricia kennedy

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24 Comments on So How Much Will The Sellers Take?

MAR

Pat - Buyers should never be shy about making an offer or worried about offending a seller in this market.

Patricia,

That's exactly what I tell my buyers. They are not going to punch you, so bring it on, do not sweat it. You will get the counter, and you would know right away what price you would be able to get.

You know, Pat, I used to think that, too. But you'd be amazed at how much listing agents will tell you in a "friendly" conversation. I've found over the years that the worst that can happen is that they tell me, "I don't know, make us an offer!" ;-)

MAR

Hi Patricia!
I absolutely agree with you! I have a seller who, for some reason, still thinks she can call the shots with a buyer. When she barely negotiated with the one offer we have had in 6 months, she was surprised when they didn't counter. I explained that she had told me to tell them her counter was her absolute bottom line...what did she expect? Now, it sounds like after a few weeks, the buyer might come back with a new offer. Believe it or not, she is already negotiating her bottom line before we even have an offer! ARGH! I suggested that we wait to find out what they offer first!

Oh and how many times have you heard the sellers say "we should have taken..." - Rita

Hi Pat... Buyers actually putting a pen on paper and making an offer is what begins the negotiation process and that can take you anywhere. Asking questions like you describe generally leads nowhere. Great post.

Pat, In this market, nothing is off the table in the way of an offer. Like you said, "what's the worst that can happen." Rich

Pat, very good information, but... can you pass this post along to the banks?

Pat, if I had a dollar for every buyer who asked the question in your title, I'd be a few thousand dollars richer!

Pat-absolutely right. I've had a few sellers tell me we won't sell for less than "X" however when "X" doesn't appear they change their minds and accept "Y". And no that isn't a discusson of NET which is illegal.

Pat, Well said but it's true what Randy above said. There are so many agents out there "suggesting" what a good offer might be for their sellers, one they think they can "get" the sellers to accept.

Negotiating is part and parcel of what we do- I always suggest putting your best offer whatever that may be out there, especially in foreclosed or bank owned property-someone may do better, or may not.

Hi Pat,
Yelp! True, nobody knows before the negotiations get underway so "Let the negotiations begin"!

I never thought of saying that to my Buyers "Even the Sellers don't know what their lowest price is until they're offered it" Thanks, I'm going to use that!

Patricia,

Seriously, in almost 40 years around the real estate market, it has rarely ever been a good idea to 'wait' to buy...!!! Thanks, Fran

Pat--I am often surprised by the number a seller will accept when it is in writing. Often there is negotiation to arrive at a final number but without a purchase agreement the sellers don't negotiate.

Thanks for the post. If you put it in writing it is more likely they will play ball. I have been asked numerous times what I think the magic number is from my buyers, and all I can do is give them my opinion and let them offer what they want. I wish you the best.

Amen. I've worked with many a Seller who told me - verbally - that they absolutely wouldn't take under [x] dollars and no way would they help with closing costs. After some time and some time to think about it AND, AND, AND something in writing from someone who is financially qualified to make the purchase, the Seller will often change their tune.

The real key, as you so apts put it, it to put it in writing with some documentation that you can actually purchase.

I ask the sellers, how bad do you want this house. If they like it, but they are not crazy about then I recommend to offer less. But, if it is the house of their dreams, I advice them to write their best offer. Most of the time it works. On the seller side like you said, an offer in writing is an offer in writing.

Hey Pat!

Classic post! I just printed this out to put into my buyer's folders, I hope this is ok? :) You have hit all the points I am dealing with right now, thank you very much!

P.S. If I can't use it let me know and I will cry a little bit and then shred it!

-Lisa

Pat. This is very similar to the CRAZY sellers market where we sqeezed every dime out of a buyer and sometimes a kidney too. Sadly those buyers are now the sellers!

Pat,

Good tip. A few years back, here, you could not even touch a house without offering about 10K over the asking price. Not the same now.

Pat - Very sound advise, just make an offer the seller will let you kn ow if you hit that number.

MAR

Pat ... thanks for this article about art of negotiation and encouragement for buyers in this full blown buyers real estate market.

Sounds of Irish .. Celtic Fiddle Fest and Happy St. Patrick's day greeting to you. http://blip.fm/~32l5r

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