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Posted by John on February 13, 2007 at 06:48:12:

What would be the average % below the asking price I can get?

Where could I find information on how long various listing have been on the market and they asking price verses what they sold for?

I am trying to make an estimate for an offer on a possible opportunity. Thanks in advance.

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Posted by Jimmy on February 13, 2007 at 07:20:01:

base your offer on your own due diligence. do not allow the askig price to influence your offer.

I have bought properties for half of asking price, and I have bought them for full price. I even made an offer one time above asking price, and was outbid.

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Posted by Gene on February 13, 2007 at 10:53:25:

>>>>>>>>>What would be the average % below the asking price I can get?>>>>>>

That depends upon you, your seller, and your ability to negotiate. I have bought properties for more than 30% below the asking price...but the seller was very motivated. Many sellers will not take 5% less. Look for motivated sellers.

>>>>>Where could I find information on how long various listing have been on the market and they asking price verses what they sold for?>>>>>>>>

Anyone with full acess to the MLS you should be able to acess this info...a realtor can help you.


Gene

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Posted by DaveD on February 13, 2007 at 14:51:33:

Asking prices, offers, etc. are the mark of the retail sale. Forget retail. Here is a hint: Most mls type deals are retail because they are represented by brokers who understand and practice retail real estate. You are unlikely to find many deals there.

Here is a better approach: Find someone who has a problem, and offer him a solution that makes you a lot of money as well.

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Posted by Sharyn SJR on February 13, 2007 at 23:51:06:

....Due to overflooding of recent market circumstances and agents desperate to make a deal before the listing expires hence following up on promises they made to seller. Right now any offer is a good offer.

Regarding John's suggestion of finding someone that has a problem and offering a solution...a lot of money is to made in Subject To's. Put out an "I buy Houses" sign. People will call in desperate situations, back taxes, foreclosure. You must have the assets to catch them up on back taxes and mortgage payments, give them 3k to move, and take over their mortgage subject to. The mortgage stays in thier name but you make the payments while holding the property. Everyone wins, you get property at value YOU determine, sellers move on with thier lives, and mortgage/taxes are happily paid on time.

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Posted by NC on February 14, 2007 at 07:41:50:

"Here is a better approach: Find someone who has a problem, and offer him a solution that makes you a lot of money as well. "

Some good advice, I must say.

You can find deals on the MLS, I'm sure, but that is where every investor, even NON-creative investors look for deals. You can imagine the competition?

I would be careful in getting into sub2 deals if you haven't read up on them. I recommend getting a book/course/many articles on this tool. It can be a GREAT way to buy, though.

If your cash poor, I suggest flipping/wholesaling to build your cash reserves first. Then start holding properties.

As far as getting sellers to drop their price, just ask them what their bottom price is if you can close fast? Then repeat the question again before you get off the phone. I think there are articles here on this very topic, why not check them out.

NC

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Posted by David Krulac on February 14, 2007 at 09:37:22:

In the old days, there were LESS deals in the MLS, as VA/HUD repos, reo, and most preforeclosures and post foreclosures never made it into the MLS.

Today all of the above plus other agency repos like FNMA, FHMA, Farm Home, and most bank repos are all in the MLS.

The difference between a good deal and a great deal is not the source of the deal, MLS or non-MLS but other factors including, location, % discount to FMV, terms including interest rate, amount down, and lenghth of time to repay.

I've bought property for less after foreclosure than I could on the same property either preforclosure or at the foreclosure auction. I know becasue there were houses that I had the inside track and could get a big enough discount or no discount until after the sheriff sale and the property was listed in ther MLS.