Negotiating the Deal

Although the Real Estate picture throughout the country seems to be all gloom and doom, our local Long Island Market, and our Massapequa market in particular are still seeing homes sell for close to asking price. As buyers are searching for homes everybody seems to be looking for "deals", the problem with this deal hunting is that many buyers feel that they can steal someone's house from them! This is not the case. While there are still bargains to be had in the pre- foreclosure motivated seller market who has positive equity in their home, the majority of homes are being sold at market value. It is also still possible to see homes that go for over ask. With that said as a buyer if you can afford to buy a home for $400000 do not waste time seeing houses that are listed at $475,000. The seller will usually not take an offer that is 75k off asking price. Even if the house is over priced it pays to wait until the seller drops his price to a striking distance number! I would define striking distance at a number that is under 10% of ask price meaning if you want to pay $400,000 you should look at homes no higher than $430,000. That would put you at 93% of asking price if you can get your $400000 offer accepted and is within the market limits for a seller to consider. With this said if a home is priced well, or priced to sell, or if the home is in mint condition and it is at $430,000 you will probably have to pay $425,000 or maybe even ask price. To put it simple if a house is mint and you want it don't mess around by low balling the home owner, if the home is worth it don't be afraid to pay for it because of the "tough" market chances are the homeowner could have received alot more for his home 3 years ago so the deal is already in the price!