“With an abundance of inventory, buyers are more in control. Although prices are still high, most are very negotiable. I would advise looking for the home you like and negotiating the price for as much as $100K.”
Thats right!
Just another temptress trying to appeal to the new breed of buyer. Her statements are meaningless. How much you can negotiate is determined by how well the home is priced by the realtor. if its agressively priced it might sell at asking price. If its way overpriced $100K may be overpaying.
I think what is offered depends on the buyers. I have a few buyers who have exercised extreme patience. The offers that they have submitted in all cases are at least 10-15% below the asking price (low end) of the homes they are looking for. In each case thier offers have been summarily rejected. However in time they will get what they want and they will get a good deal. I have had other buyers who didn’t have the patience and paid a higher price.
The issue is that in a declining market what you think may be the right price may already be based on stale data.
The bottom line is that if you are a buyers agent, you owe that fiduciary obligation to the buyer. So if your buyer wants you to offer a price 100k below the asking price, then you should do so regardless of the comps. Of course I would call the listing agent and let them know I am not trying to offend them, and that I am simply following the wishes of my clients.
My guess is that a seller who rejects the first -10% offer, would take the second -10% offer. The second low offer might force acceptance that the market has indeed gone down. Any experience with this happening?
I had it happen on a Del Mar Heights listing that closed in June but it was not quite 10%… The buyer came in at an original price. I encouraged the seller to take it but he screwed around, countered and the shrewd buyer walked. That same buyer came around 4 weeks later with the same offer and my seller snapped it up. It was 5% below asking.
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