Homepath Negotiation Tips

[Taynia Aarnink]

Hi all. Hope you're doing well.

I put a bid on a Homepath property yesterday at 10% below asking. I've been doing some research and it seems the typical process is they will counter with a reduction in asking by $1k and $2k. After which there are several back-and-forth, with final closing around 94% of asking price.

Curious - is this consistent with your experience?

Thanks much!

Happy day.

[Sam Leon]

this is not consistent with my personal experience.

However, I only had two "successful" homepath offers which ultimately resulted in an acceptance. Both fell apart later due to title issues.

In both cases I calculated what the property was worth to me, then knocked off a few thousands, and made my offer. Each counter I raised 1k.

One case they listed at 185k, I offered 150k, they countered 165k, I offered 151k, they countered 155k, I said 152k and they accepted.

The second case they listed initially at 199k, I didn't offer, they dropped to 189k, 79, 69, 59. At 159k I offered 128.25k, they rejected didn't counter. I waited two weeks then offered 130k, they didn't accept nor counter, then a price reduction to 144k, I offered 131k, no answered. After a few weeks I resubmitted same offer and was accepted.

I didn't see any pattern. But I only have two useful data points.

One thing I did notice was I am not sure the terms made a difference. I had time after time offered with no inspection, or up the EMD to 50% and it didn't seem to matter. LA told me they took a higher offer, leading me to believe price is all that mattered and terms may just be tie-breakers.