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Real estate editor Maryann Haggerty and columnist Elizabeth Razzi respond to a question adapted from a recent online chat.
Columbia: My wife and I are looking to buy our first home this fall. Given that it is a buyer's market and that we have no time pressure to buy, we hope to get good value on our purchase. However, we also recognize that making low-ball offers may not be the smartest way to open negotiations on houses we are truly interested in. What would you consider to be, at this time, a general threshold between a "reasonable" low opening offer and low-balling? Ten percent less than listed price?
Elizabeth Razzi: Homes sold for an average of 91.7 percent of original list price in Howard County in August, according to Metropolitan Regional Information Systems, the local multiple-listing service. Given that, offering 10 percent less than asking price seems reasonable for a home you seriously want to buy. It might allow the seller a bit of wiggle room for a counteroffer.
Maryann Haggerty: It's tough to say that a given percentage is right or wrong. It depends on the listing price. If it's outrageously high based on recent comparable sales, you could offer a lot less. (Of course, this is the seller most likely to take umbrage.) If it's a real steal, just make a quick offer at or close to asking price.
If you offer below asking price, be prepared for counteroffers and know what your true reservation price is.
If you really like the house and want to signal that you truly are interested, you can indicate that you are flexible about other terms, such as closing date.
The next Real Estate Live chat will be 1 p.m. Oct. 17.
