You probably want to open with an offer below the listing price. See our guide on moving house now the lockdown has been lifted for latest information on the performance of the housing market. Real estate agents often suggest that sellers either accept the first offer or at least give it serious consideration. Other variables can affect how much you offer as well, factors that may have nothing to do with the property's value. Whilst sold house prices can help give an idea of recent sales, it’s better to see what the competition is like now. "The comparables should be your go-to on a first offer," says Shane Lee on behalf of Realtyhop. The first attractive offer that comes your way may be the one worth accepting. Bargaining Tools. But most repairs are negotiable; the seller may agree to some, but say no to others. Also, if there are any faults or repair work required, use this to justify a lower offer. Also notice if houses are staying on the market for a month or more on average. When submitting an offer, be prepared to provide earnest money, which can range from $500 to 10% of the agreed-upon price and shows the seller you’re serious about buying the house. The first is to make your first offer your best offer. Real estate agents often suggest that sellers either accept the first offer or at least give it serious consideration. Your agent will write an offer letter and send it to the agent representing the seller. First, you’ll view a house and decide you want to make an offer. This kind of offer is acceptable in situations when some updates need to be made — but nothing too serious. Or the seller can offer a price reduction, or a credit at closing, based on the cost of the repairs. Despite house prices hitting record highs, a third of properties actually go below their asking price. The seller will respond in one of three ways: The seller accepts the offer… This means they will probably recommend you make an offer close to the asking price. If there are few similar properties for sale in the area, chances are the seller has the upper-hand. Be complimentary of the property and community, and keep the letter short while still letting the seller know you’re a … When it’s reasonable to offer 11% to 19% below the asking price. If your initial offer is not successful, there could be a couple of rounds of offers and counter-offers back before an agreement is made. This will show that you’re a serious buyer and could be the way to go if you don’t want to get into a drawn-out negotiation process. If the seller is motivated to sell, a lowball offer between 10% to 30% off the asking price may be acceptable. If so, then you are in a buyer’s market. Coronavirus update. In that case, you will likely need to offer at least the listing price. About the author: The above article “7 Reasons Why Your Offer To Purchase A House Was Rejected” was written by Xavier De Buck, your top-producing Johannesburg real estate agent.Xavier has been nationally recognized and awarded for providing service excellence, exceptional property sales, whilst exhibiting the highest level of professionalism. High Listing Price Selling a home can be an emotional affair. When this happens, the market is a seller’s market. “We recently helped a client who inherited a house,” says B. Cornelius Charles , co-owner of … So if you are a buyer looking to get money knocked off the final price of a property, how much should you offer?