Do You Haggle?

By
Real Estate Agent with Allison James Estates & Homes 01079287

Buyer's always want to know how low can they offer? My response is let me pull the comps and check out sales and listing history. I try to pin a number that an appraiser will use. In running a CMA it is so important to note that unique properties are a challenge, to compare apples to apples. Horse ranches, citrus, groves, vineyards with land wells and septics, will rarely comply to square foot analysis, like it does  for housing tracts.

 Listing  history and past sales tell me alot about the seller. If Mr. Seller bought at the height of the RE Bubble and has hung on for the last 9 years praying for a market/price rebound, Mr. Seller is Bullish, and probably won't budge. 

Banks and Flippers are in it for profit, they might give a little discount, in initial offer but only  if it has been more than 30 days on market, but don't expect repairs pretty much "as is". 

 Cash discounts? What can you expect if you are paying "All Cash"? Answer 10 day close and no appraisal contingencies. Banks don't care about your Cash, because in 30 days its all cash to them. The usual time to get a cash discount is if the property either cant qualify for financing, because of condition, age, unpermitted buildings, etc. if seller has disclosed all faults before buyer writes an offer, price reflects faults and buyer acknowledges this when making an offer. If seller does not disclose and buyer finds other issues affecting title, value or use. Renegotiation, cancel contract and or a price reduction is an option. 

 How much do you ask for? Pie in the sky number doesn't work well. How much does the fault devalue the property, will there be back fees to pay to bring the property to code? 

Best way to haggle? Always split the difference and meet in the middle.

 

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Realtor simple guideline to guesstimate a Homes values! Comparing apples with oranges? How to set values for embellishments? Do you think the old adage of Value equals Location, Location, Location, is true? Views, Pools, special interest additions can add desirability, and then Granite Counters, Travertine flooring, condition, square footage and any embellishments, upgrades, updates you can add to a property is worth 60-70% of the cost. This value will also be depreciated over time. Example would you consider if a twenty year old solid oak cabinette's
value even in good condition is equal in value to cabinets in the newer current color, or are they? Objective would be desirability.

Location is the basis for value. Like Homes within a one mile radius share values, and can be evaluated by sales per square foot within the last 3+ months. Pulses

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Rainmaker
4,077,725
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Tere, we have been in a seller's market for over 3 years and still seeing buyers asking if they can write low offers.   With multiple offers, they will not win.

Oct 23, 2016 02:46 AM #1
Rainmaker
62,274
Tere Rice
Allison James Estates & Homes - Temecula, CA
First Time Home Buyers, VA Buyers, Horse Ranches,

Congrats to Denver!

Oct 23, 2016 03:02 AM #2
Rainmaker
62,274
Tere Rice
Allison James Estates & Homes - Temecula, CA
First Time Home Buyers, VA Buyers, Horse Ranches,

Real Estate is either boom or bust. Human nature is to low ball, after the RE bubble,  no one wants to pay more than a house it is worth. Low ballers usually come around after getting turned down a few times.

Oct 23, 2016 03:05 AM #3
Rainmaker
62,274
Tere Rice
Allison James Estates & Homes - Temecula, CA
First Time Home Buyers, VA Buyers, Horse Ranches,

Knowing and educating your clients as to the current market status helps.

Oct 23, 2016 03:06 AM #4
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Rainmaker
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Tere Rice

First Time Home Buyers, VA Buyers, Horse Ranches,
Home Values
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