Should a Buyer deduct a standard percentage of list price on an offer?

Reblogger Lenn Harley
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

There is no Standard anything in real estate sales.

A Buyer's Agent owes their buyer client the same level of service in determining the price to offer that the listing agent owes their seller client.  That includes pricing properties so the buyer has the information they need to make good buying decisions.

Anything else is mere guesswork and eventually will result in time and money wasted.

Itf it's not worth doing right.  It's not worth doing.

Smart agents research, advise and report.

____________________________________________________________________________________________________

Original content by Scott Godzyk NH License 033394

What is the best way  for a Home Buyer to decide what price to offer? There is a troubling trend that may be causing buyers to lose out on their potential Dream home. Some Manchester NH area Buyers want to make a "standard" deduction off the asking price. On a recent offer to my listing the Buyer Broker told the buyer to make an offer 10% less than the asking price.

 

The buyers offer was rejected. The Buyer was furious and the Buyer Broker scratched their head. The home was already listed below market value for a quick sale. Had the Buyer and  their agents simply completed a Broker Price Opinion or CMA on the property, they would have easily seen that.

 

Then again yesterday the same company, different agent and different Buyer discussed making an offer on my new bank owned listing. Once again they spoke about a standard deduction off the listing price. My deduction is they are being trained this way which is not helping their clients.

 

 

Click here for Manchester area Homes For Sale by clicking here. what is for sale by clicking here.

 

In summary with a shortage of homes for sale and a strong amount of Buyers, the correct way to write an offer is to write your best offer first.

 

To know what to offer, you really have to assess what that home is worth in today's market. Without doing so you do not know that the home is listed at market price, way above or already priced below market value. 

 

It is never recommended to base your offer by deducting a standard amount form the asking price. In addition it is not recommended on hiring just any agent to help you buy a home. As you can see your success can be only as good as the agent you hire. You need and deserve an agent who will not only show you homes, but inform you and guide them through the whole process.

 

Buyers and Sellers should know that they have a choice of agents. Use your choice to hire the BEST agent in your area, and know that bigger is not better. 

 

I have put together a simple recipe for both Home Buyers and Sellers. Follow this along with pricing your home right, and the result can be a SOLD SIGN in your front yard.

 

 

THE TOP TIPS TO FIND A "GREAT" REAL ESTATE AGENT

 

 1. LEARN THIS ONE FACT: One should know that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest Agent or Company. It is important to Hire the BEST Agent. In NH that could be me.   

2. CHOOSE THE RIGHT AGENT: As a Buyer OR Seller in this market you need every advantage you can to get your home sold. It starts with choosing the right agent. a. Ask for a Full time agent whose sole job is to sell homes. b. Ask for a Full service agent who will guide you through each step of the selling process. Discount brokers often equal discount services. c. Ask for a Local agent who knows your neighborhood and is readily available when you need them is a must. Out of town agents can leave you high and dry in your time of need. d. Ask for a well experienced Listing Agent can give you the advantages you need when selling your home. Not all agents are created equal. Choose only the best.  

 3. HOME BUYERS SHOULD START BY:  Getting a FREE PRE-QUALIFICATION with a local and trusted lender. They will look at your credit and financial picture and let you know what type of mortgage you may qualify for and what your interest rate and monthly payment may be.   

4. HOME SELLERS SHOULD START BYGetting a FREE MARKET ANALYSIS. Learn what your property is worth in today's market along with how ling it may take to sell. If you are ready to sell now, learn what you should ask for it. How much offers may come in at and what the approximate selling price should be. NH Home owners should contact me now.   

 

 

IN SUMMARY the key to having a successful purchase or sale can increase simply choosing a better agent. The secret is that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. I leave you with now infamous philosophy, which is simple, to provide more personal and professional service to guide my clients through each step of the buying or selling process.

 

 

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.


If you are thinking of buying a Home please contact us. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.

 

 

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale which may be able to help you.Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees.

 

 

 

We are local agents with experience who GET RESULTS!!!

 

We stand by you through every step in selling your home.

 

Another reason that makes New Hampshire a great place to Live, Work and Play.

 

  • About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 28 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the buying and Selling process. We are proud to be locally owned and operated.

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Rainmaker
456,391
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

This is always frustrating to me. The comps show fair market value and every now and again I will get a buyer who will simply not listen to me even though they were accepting my advice in the beginning. It is like another personality comes out. 

Sep 08, 2014 11:05 PM #1
Rainmaker
2,394,983
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

It doesn't make sense! You are 100% correct, the offer should be either asking, but only if it is realistic, or where an honest CMA says it should be.  Still doesn't mean the seller will accept it, but at least you won't over offer and then have it fall when an appraisal comes up short.

Sep 09, 2014 12:49 AM #2
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Shannon.  HA!  Worse than that.  The act like we have our hands in their pockets.

Not fun.

Evelyn.  In my area it's rare when buyers get more than 3% off list.  Rare indeed.

Sep 09, 2014 12:59 AM #3
Rainmaker
715,269
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Lenn, I think the blogger used "me" just a little too often. Of course, we should always hire the best.

Offer price should be what the buyer wants to pay for a particular property, not the asdking price or a standard discount from the asking price.

These seminar people teach "make a lot of low-ball offers, younnever know how motivated a seller is." Maybe that's good for them, but I'm not going to write all those offers.

Bill Roberts

Sep 09, 2014 01:22 AM #4
Rainmaker
529,540
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Lenn Harley - I still have buyers who want to start LOW, figuring that the seller will meet them somewhere in the middle. With some buyers, I've actually had them lose out on a house or two before they wised up. Nowadays, if there is a well priced home, I tell them to make a full price offer and ask for some concessions. Plus, if they make the offer contingent on an appraisal, I tell them they will not overpay.

Sep 09, 2014 03:43 AM #5
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Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Bu the time we prepare an offer, my buyer clients usually seek my recommendation. In spite of any recommendation I make based on a Comparative Market Anaylsys, a Market Trends Report, and their motivation, the decision is always the buyers - whether I agree or not. 

Sep 09, 2014 05:05 AM #6
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Why do we try to standardize every thing Lenn? I feel most agents do their home work and the price should be pretty spot on. If you want bargains go to Walmart...

Sep 09, 2014 05:21 AM #7
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Margaret.  That's a fact and they'll live with their decisions.

Hella.  Hopefully when we help our buyers understand property values, they make good decisions.

Bill.  Same here.  We get back to their motivation.  Which is more important to you, negotiating or buying a home?

Sep 09, 2014 05:39 AM #8
Rainmaker
1,240,821
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

I feel sorry for the client/buyer that is working with an agent that makes such a suggestion, Lenn.  With all the transactions I see, there is little (if anything) that is "standard" about real estate transactions anymore.  That includes their pricing, offers, and mortgage process.  Wow ...

Gene

Sep 09, 2014 06:20 AM #9
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Gene.  You're so right. 

Sep 09, 2014 06:55 AM #10
Rainmaker
1,857,566
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

It seems to me, as a home inspector, that deals happen when the house was priced right and the buyer understands that.

Sep 09, 2014 09:05 PM #11
Rainmaker
517,919
Morris Massre
Pembroke Pines, FL
Real Estate Instructor Broward County Florida

There is no standard, although it is common for a lot of buyers to share this stupid theory of offering less to offset commission. 

Sep 10, 2014 05:03 AM #12
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Jay.  Many buyers really believe that they're going to get a great price.  Sadly, they don't know what a great price is.

Morris.  WELL SAID!!

Sep 10, 2014 07:12 AM #13
Rainmaker
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Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

This is a good question Broker Lenn Harley at (800) 711-7988.

Sep 26, 2014 03:42 AM #14
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Will.  Thanks.

 

Sep 26, 2014 07:47 AM #15
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