What % Should You Go For When Making An Offer On A House?

[Theraflu]

Hi brehs!

I'm moving again, this time I'll be a cash buyer. My dad gave me money his 'inheritance/investment' to me was to offer to buy me and my wife a place outright...but I know im getting nothing after he dies...we did this for tax purposes.

Anyway what % should you start bidding on a property you hope to buy especially as a cash buyer? So for example would you say 20% is too low ? I think going in at 20% is fair? but some people say it's too low and insulting to the seller ? I think as a cash buyer it's not ? I don't think that's a cheeky offer ?

Let me know your thoughts, especially those of you in real estate or who have bought homes

thanks a million

Flu

 

[unit321]

Hi brehs!
I'm moving again, this time I'll be a cash buyer. My dad gave me money his 'inheritance/investment' to me was to offer to buy me and my wife a place outright...but I know im getting nothing after he dies...we did this for tax purposes.
Anyway what % should you start bidding on a property you hope to buy especially as a cash buyer? So for example would you say 20% is too low ? I think going in at 20% is fair? but some people say it's too low and insulting to the seller ? I think as a cash buyer it's not ? I don't think that's a cheeky offer ?
Let me know your thoughts, especially those of you in real estate or who have bought homes
thanks a million
Flu

20% off the selling price or 20% of the selling price. 20% off is a lot unless it is a buyer's market. 20% of the selling price is low-balling and no one will take it unless there was a nuclear plant meltdown nearby.
There are various things to consider. For fixer-uppers, you go down a couple thousand from the selling price. Depending on what needs fixing, you can estimate the repair, replacement of things and offer it at that price. You will want a home inspector to inspect the home. Some people like to negotiate for the seller to fix things before they buy it and others will drop the purchase price if they are going to fix it themselves. Compare the home price with other house prices in the area. Use zillow.com or trulia.com to find out prices in the neighborhood.
For nice homes, it depends on the market and demand. If the home is in a desired neighborhood (good location), you can expect the seller to counter-offer or reject your offer if it is too low.

 

[the cac mamba]

you're tryna offer someone 20% of what they want

 

[ultraflexed]

Do you mean 20% over the asking price.
No.
If your a cash buyer your best leverage is being a cash buyer which means the seller gets their money fast and can skip contingencies (which isn't always a good for the buyer) .

So if I was buying in cash out right on a house that 500,000, I would offer no more then 520 or 530k max but start lower like maybe 510k, sometimes they'll bite especially a all cash offer.

Now for what your saying 20%over.
Do you know 20% of a house that's 500k is 100k extra, that would be crazy to do.

I would recommend not being a all cash buyer and get a loan, and put down a 50% down payment on any house you chose which would give you a ridiculously low interest rate probably in 3.7 range, and put the rest in the bank and use some to furnish the house.

 

[Theraflu]

20% off the selling price or 20% of the selling price. 20% off is a lot unless it is a buyer's market. 20% of the selling price is low-balling and no one will take it unless there was a nuclear plant meltdown nearby.
There are various things to consider. For fixer-uppers, you go down a couple thousand from the selling price. Depending on what needs fixing, you can estimate the repair, replacement of things and offer it at that price. You will want a home inspector to inspect the home. Some people like to negotiate for the seller to fix things before they buy it and others will drop the purchase price if they are going to fix it themselves. Compare the home price with other house prices in the area. Use zillow.com or trulia.com to find out prices in the neighborhood.
For nice homes, it depends on the market and demand. If the home is in a desired neighborhood (good location), you can expect the seller to counter-offer or reject your offer if it is too low.

thank you!!!!!