Q: What is the rule of thumb for how much (less) to offer on a home?
A: This is a common question both from homebuyers and sellers. The fact is, each transaction is unique, and there is no "rule of thumb".
Some homes are priced with 3-5% negotiation factored in, some homes are priced firm. The only way you will know the seller's biottom line is by viewing the property, submitting an offer, and negotiating.
Don't assume because the current housing market is soft that sellers are desperate. While there are some deals to be had, the average seller is holding strong to fair market value. Making a low-ball offer will often be taken as an insult by the seller and close the door to further negotiations.
Also, never discuss price until AFTER you've viewed the property. No seller will ever take a verbal "sight unseen" offer seriously. Buyers need to view the property and weigh the home's pros and cons firsthand.
The best "Rule of Thumb" is to offer what you are willing to spend, or just slightly less.
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