is 90% offer on asking price fair by today's standards?

[mia220]

We didn't get it. The sellers accepted the full list price offer. Everybody has told us to offer under list price. Homes don't seem to be moving in the area where we looked, so I guess this one was priced right. Also, it has a huge yard.

[Incognito Mosquito]

Your story is a common one Mia. Everyone sees the headlines about the dismal housing market and assumes they're going to get a steal on whatever property they want to buy but in many cases it simply won't happen, for a couple reasons: A) The Chicago market was not hit nearly as hard as some parts of the country. Housing values have been stable and even risen in some suburbs over the past year. B) It really depends on what the house is worth. If a seller already took the slowing housing economy into account when setting the list price then it may well be priced right where it should be and an offer at 90% won't even get you a return call.

For the original poster, I don't know how the Dallas market is compared to Chicago but being a sun belt state I'm guessing it was hit a little harder. Chances are you won't get quite as good of a deal up here as the buyer got on your place in Dallas. Use common sense when buying and pay close attention to what other homes in the area are going for.

[Rhonda Andreoni]

What would you say about the offer on asking price today, in the Indiana area? I just sold my house, terrible real estate agency, I grant you, on the market for over a year with multiple price reductions. Ultimately, I was down 215K from my building price and still got an offer of only 78% on asking price. I settled for 91% on asking price....a 255K loss.

I now want to buy; but I am worried that my situation is rare...any thoughts?

[Humboldt1]

You will be able to buy some cheap stuff this spring but we may not hit bottom price-wise next year. I hope we do.

[aragx6]

Originally Posted by Humboldt1

You will be able to buy some cheap stuff this spring but we may not hit bottom price-wise next year. I hope we do.

From what I've seen that's probably about right. It seems like the big question at the moment is interest rates. Locking in a 30-year mortgage under 4.5% really helps to insulate you from small swings.

[Gunner0325]

We just sold our condo in Edgewater/Andersonville and took a 17% loss...that was rough. We are hoping to make up for it in the buying end. So we will most definitely go in at 90% offer or less when we do find a house to buy. But it does depend where you are looking. If you are looking to buy a condo in the city you can get amazing deals right now because of inventory. But if you are looking to buy a house say in an area that doesn't have as much inventory to choose from you might only get 95% of the sell price...just depends what area and how much inventory.