Off Market vs. Retail Pricing

[Katherine S.]

I've been looking at a couple off market packages of SFHs for our portfolio. In this latest one, the seller picked a price for each of 5 houses that looks to be about retail market pricing. He's shopping it off market before deciding if he'll list them on the MLS.

I know what numbers would work for me (and it's not anywhere near retail prices) but as a general rule, is there a typical discount off of retail that's expected in an off market deal?  It doesn't sound like the buyer is distressed or in a hurry.  I'm trying to figure out if other bidders are being more aggressive than I am.

[Larry Turowski]

@Katherine S. What matters is what works for you.  There is no typical discount.  However, you can use your negotiating skills to explain to the seller that they'll pay commission when selling on the market, that they may have to wait longer than they'd like, that they'll be tied into a listing contract for months, that they may have picky buyers, etc.