US Homesales

US Homesales

In a “good” market, homes in the Hamptons sell for 98-102% of asking. That is, the homes that DO sell…not everything sells, as even in good times, there are those sellers that attach a value to their properties that only a mother could love.  They are the highest bidder on their own properties, as my friend and colleague, Jeanine Edington says. Many of these homes have been on the market for years, but that’s another post.

This post is about a different strategy; bidding a house DOWN. Recently, I was representing a buyer who put an offer in on a house that was about 15% below asking. The owner came back with a 3.5 % reduction counter offer.  The buyer came back at 12.5% below original ask and, there it sat…   The seller stood their ground, still a 9% gap between them. Keep in mind,m this buyer is pre-approved for her financing and can close in 30 days…she is a strong buyer.

The next move?  The buyer agreed to come up to their highest and best price, which is 90% of the sellers asking price – with a caveat; the seller has 5 days to accept it, or the offer goes DOWN 1% on the sixth day and the offer continues to go down 1% a week.  Interesting, eh?

So, in rough numbers, here’s what it looks like:

Offering price $1,500,000

Buyer first offer $1,250,000

Seller counter $1,450,000

Buyer second offer  $1,300,000

Seller  second counter stays at $1,450,000 (They state that they believe St. Obama will make everything better soon)

After two weeks:

Buyer makes Final Offer of $1,350,000 good for 5 days, after which time, offer goes to $1,335,000 and one week later, offer goes to $1,320,000, then $1,305,000 one week later…

it’s a new day, folks…