If you were buying a home today as a first time home buyer, how much would you try to low-ball?

Question

They are asking $169,000. I was thinking about coming in at about $130,000.

I know the sentiment that I've heard the last several years has been, "Don't do that, you might insult the sellers." Personally, I think that is the biggest line of bull ever created by realtors and lenders. It's a sales tactic scaring potential buyers from negotiating.

What do you think? Do you think I have a chance? The house has been on the house for about six months.

Answer 1

It depends on several factors. Has the house been listed at $169K the whole time it has been on the market? It may be that the sellers cannot afford to sell for much lower.

It can't hurt to try though. The sellers are unlikely to be so insulted that they refuse to even counter-offer, not after six months.

Answer 2

It really depends on many factors.

Most serious sellers will readily take 10% below their asking price. 20% below would not be unusual if they are in a bind and want out.



The three biggest factors are what they paid for it, what they owe, and how desperate they are. If you are really interested do some research by going to the court house and find out what the taxed appraised value is and what they paid for it. If they paid 160 for it they can't sell it for 130. You will be waisting your time unless it is listed as a short sale.

I normally only look to make offers on homes that people have owned for some time, bought for much less than current market value, and are in a bind. I.E. divorce, loss of a job, to settle an estate. This is where you will pick up a good deal.

Answer 3

Make a firm offer. "The highest I can go is 130,000. No, really, 130,000. That's my best offer."  if it's been on the market 6 months, the sellers are delaying whatever they want to do next to sell. They may not take the offer if they owe more than that on the mortgage, but they can say no. It's worth a try.  Even if they are 'insulted' so what? They can't shoot you.

Make sure you are preapproved by your mortgage company before you start.

Answer 4

I just went though the same situation, our Realtor told us to just low ball them. Whats the worst they can do, is refuse or counter offer. Usually it takes multiple counter offers before one is finally chosen as the set price. The house only being on the market for 6 months is not enough time for someone to be really desperate on taking an extremely low offer, usually that starts after a year. Honestly, I would say they probably wont take anything less than 150,000