Real estate tip: Initial offer.

Any good tips?
Buyer market, 22 similar properties on the market currently, most over 100days on market.
Two specific comps sold for 20-30k under asking price. (10 to 14% )

Property in question is similar if not slightly better in location but smaller, so I can use there sale price less square footage difference to determine what it is likely worth. How much below that do I go?

Comps were sold approx. 2 months ago, in peak season. No recent sales.

Aside from price, ask the seller to pick up all closing fees and pay for a one year home warranty program.

we spent one day looking for houses last sept. there was lots of prep but we only thought there were 12 potential properties.

We visited each. we liked the last one.

The deal in france is that once a property is under offer you can not be "gazumped" so the problem is that if you offer to much you get it, but feel you were done, if you offer to little and someone comes along 10 minutes later and their offer is accepted, you can not go back and offer more - thats the way if works contractually here

so we liked the house, I think it was on at 630, or there abouts.

in general the french market is slow - they all think its worth more than it really is and the average time to sell is usually months rather than days and weeks BUT hot properties go quickly

so after visiting we went to pick up some dinner and whilst my wife went in to the shop I called the realtor and said, we want the house, I will offer 550, I am not going to pay 620, and I am not going to pay your commission but if you can get them to accept a figure I will come and sign a contract to buy in the morning.

She called me back within in 10 mins and we agreed on 590

I was subsequently talking to my neighbour, he had offered to buy it off them, but only offered 540 / 550 and they said no. So perhaps someone between 550 and 590 I could have bled them for another 10-20k - I do not know

I wanted the house, the risk of losing it over 10-15k was not worth it relative to how difficult it would be to find something we would be equally happy with i.e. it took nearly 9 months of looking at every property on the internet for there only to be less than a dozen, realistically less than 5 properties we would have even considered.

I guess in summary it depends how bad you want it. I figured 5% off asking, plus the fact that either they or the realtor ate some or all of the difference was a reasonable result

Realtors work on commission, they're the worst source for valuation.

These are recreational properties. Lake properties.

Not sure if that makes much of a difference. The seller had the property listed @ 230 mid June, no offers, dropped to 219 in July. When the 2 comps sold for 218.5 and 210 mid august they dropped it to 200. Now into the fall, lake season is done, and they have not had a single offer.

They are selling because they are building a new acreage. I believe the value is 180-190 compared to the comps (but I am no expert). I feel an offer of 175 is a good place to start.. Right now I am just getting gun shy.

I do not have a realtor, I have just seen the place with the sellers realtor. Not sure I want to bring another party in at this time.

The listing realtor is the worst source for valuation since they set (or agreed to) the asking price. A good realtor is always going to do everything they can to get their clients the best deal possible, no matter which side of the deal they are on. //

But don't both sides of the deal realtors get paid according to the final sales price? Is not the incentive you ascribe to the selling agent also present in the buyers one??