How much lower than asking price are home buyers offering these days?

By
Real Estate Agent with RE/MAX Centre Realtors

I was talking to an agent the other day and we were discussing the current market. The buyers are taking their time and the list of features they are looking for in a first time home is longer than some move-up  buyers asked for many years ago. They hear it is a buyers market and believe they can get homes at half the listed price.

The agent was out showing homes and it seems the buyers asked her ,' Can  buyers offer $100,000 less than asking price these days? ' They were interested in a house. The houses she was showing were in the $400,000 price range. She was shocked and thought she was wasting her time with the buyers if they wanted to offer 300k for a 400k house, that was not a foreclosure. She said she could do a market analysis and help them determine a fair price.

I have met buyers who ask what the sellers will accept. They usually want to put in low ball offers. I have prepared a  letter of intent where we fill in price and contingencies and ask them to sign it and also get a good faith deposit .This works out because I would like to present an offer however low it may be and if the seller comes up with a counter atleast we know what they will consider. I explain to buyers how some sellers may be offended and not counter and if they are willing to take a chance they can make the offer. Fortunately I have not yet met a buyer offering 300k for a 400k house.

I was wondering if others are having similar experiences with buyers.

 

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Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

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Ambassador
1,485,470
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Gita, I am not seeing anything that extreme. But low ball offers can be downright silly. Not only insulting, but silly.

I did see a listing description yesterday that said offer between $525,000 and $650,000. So with that description who would offer more than $525,000. Made no sense. A buyer can offer whatever they want. Doesn't mean anything though unless the seller has a meeting of the minds.

February 02, 2008 09:41 AM
Rainer
59,597
Krista Fuchs
Chester County Realtor - (484) 459-8025 - Home Buying and Selling
Prudential Fox & Roach

I have come across Buyers that want to totally low ball and others that just won't buy because they feel the market hasn't hit bottom.  I just continue to educate them on the state of our local market which is much better than what they are hearing nationally. 

One problem in my area are the builders dropping their pants!   I've have had offers accepted up to $70,000 less than what they list.  This has been for quick deliveries and each time I was shocked when I made the offer and the sales associate didn't bat an eyelash at the low offer.  Once new construction goes that low buyers don't see the value in resales.

February 05, 2008 08:03 AM
Rainmaker
1,753,849
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors
Krista, Thanks for taking the time to comment. I guess I will get more buyers to look for new construction.
February 05, 2008 10:23 AM
Rainer
131
Blog Pennsylvania
Blogger

February 2008

Actually, yes, it is quite normal in this housing market for prospective buyers to offer $75K-$100K less than asking price of the home. Many buyers are now using the tax assessed value as a baseline bargaining tool.

THE MARKET DETERMINES THE PRICE. So if a property has been on the market for a very long time, the property simply is priced too high. The longer a property sits on the market, the more likely buyers will submit low offers ... the longer, the lower in this market.

Some realtors and sellers wish to believe that the market has hit bottom. No, the the housing market is going to get much worse before it gets any better all across the country, and buyers are offering substantially less than listing price and fewer are budging with counter offers. Those sellers who are refinancing in an attempt to wait until the market picks us are in for quite a surprise, as the bottom of the market will not hit for years down the road.

Sad but true, an incredible number of homes are now selling for less than tax value and less than mortgage value.

February 18, 2008 09:01 PM
Rainmaker
1,753,849
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

It is the buyers who will determine what they want to pay.  It is not easy to refinance these days.

Welcome to Active Rain. Hope you get time  to post your profile.

February 19, 2008 04:57 AM
Anonymous
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Rainmaker
1,753,849

Gita Bantwal

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
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