How much can I negotiate? How high should we search?

By
Real Estate Agent with Berkshire Hathaway HomeServices NJ Properties

I had a client ask how high over the top of their price range should they be looking when searching for a home.  If their range tops out in the $700,000s is it worth it to look into the mid-$800,000s?

My opinion is this: If you don’t want to go over $800 then looking up to $850 might be frustrating … Here in Basking Ridge most properties close between 94% and 96% of list price at time of sale. Many properties are not priced right and will sell for less than that – but not necessarily before the seller adjusts the price. As much as we want it to be, it is not a science… by knowing the inventory and using my network, I can help you determine a good offer that takes motivation and market value into account.

The other point that many people – buyers and sellers alike – lost sight of is that an offer should be relative to market value NOT list price.  This is a tough one and sometimes you have to test the market (as a seller) or test the seller (as a buyer).

It’s more art than science…

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Comments (1)

Monique Ting
INET Realty Honolulu, HI - Honolulu, HI
Your agent under the sun

Definitively more of an art than a science. It all depends on sellers motivation, specific location, how many comparable  also for sale...

When I work with buyers, I do try to keep in the price range my clients can afford, but once in a while, won't mind showing them properties in a slightly higher price range.  Doing a thourough market evaluation will tell me if the asking price is justified or if the house is overpriced.

Jan 05, 2012 08:51 AM