Need some advice on negotiation

[Shepard Solomon]

Hi,

I wanted to get advice from others who been down is road before. I have a property I’m interested in that is listed for $55,000 and been on the market for 634 days. The home value is $49,000. Also the comparable homes that sold recently averaged out to $45,000. It needs a new carpet, the owner offered to put new carpet or give a carpet allowance.  My plan is to bring this asking price down. I’m just wanted to know what you professionals would you do in this situation. Specifically, how would you bring the price. What will also be your counter offer strategy? Trying to learn and do this the best way I can. Thanks 

[Joe Splitrock]

@Shepard Solomon is the seller motivated? I would question after that many days on market if they even care if the property sells or not. Is it vacant? Assuming they are living there, then they ware probably just fishing for the price they want. The problem is after a property sits on the market that long, it gets stinky. What I mean is potential buyers think it has major problems, otherwise it would have sold long ago.

If comparable homes are selling for $45,000 then I would offer $40,135. My guess is they will counter offer something. Say they offer $50,000 as their bottom dollar. Tell them you can't pay a penny over $43,878. The uneven numbers on your side are to lend credibility to the thought you put into the offer. If other comparable properties are selling for $45,000 then there is no logic in paying more than $45,000. 

Other ways to negotiate could include offering a higher price with a carpet allowance. Or maybe asking for the seller to pay more of closing costs. These are two ways to get a little more out of them without the selling price dropping as much.