Although everyone hears that there is a glut of properties on the market, and that the volume of sales has dropped, by at least 20%, actual sales prices have not dropped, by much, in the city.
Therefore, if you’re a buyer, and make a low-ball offer on a condo, the seller is likely to reject it, immediately.
There are certain ways you can increase the chances of making a successful bid.
Patience, and an understanding of reality, are necessary.
Patience, because you are going to need to persuade the sellers that you are making a fair offer. Understanding of reality because, even with slower sales, again, prices have not dropped. If you plan on buying, today, don’t expect the deal of the century.
A common theme of today’s market is that sellers’ expectations are still based on last year’s prices. It’s common to find new listings that are priced too high for the market. If you’re interested in one of these listings, be prepared for a protracted negotiation.
Let’s say you’ve found a home you really like; it’s new on the market and listed at $600,000. You’ve been looking for months and are up on current market values. By your calculations, the house is worth $550,000.
If you offer $550,000, the sellers are not likely to accept it; the listing is too new on the market. One option would be to wait a few weeks before making an offer. The seller might then be more receptive to a lower price.
HOUSE HUNTING TIP: The take it or leave it approach is unlikely to be productive. Most sellers in this market are compelled to counter a low offer in the hopes of selling for more. You could always counter back at the price you offered. But, a more promising approach is to offer less than your top price at the outset. This gives the sellers the opportunity to counter your offer, making them an active participant in the dialogue.
Complete story: What is the best counteroffer strategy – By Dyan Hymer, Inman News, by way of The Boston Globe