How much less than asking to offer?

There's no such thing as a uniform 'discount'. It all depends on the property you're looking at. A well-priced property will likely sell near or at ask. A crappy property with an over-inflated asking price will not. It's that simple.

you should check the sold listings. that should give yu all the info

why is sag habor different from southampton

13.8%

Just start with 10% off the asking price. Be happy if you get 5-7% off.

Just a general rule of thumb I've used for years, works pretty well.

I second bramstar here - asking prices can vary so widely, that it's kind of nonsensical to approach all offers with a standard discount off ask. Determine what suitable comps have been trading at recently, what you're comfortable paying, and whether you see any significant downside risk in the near-term - I think that's a much sounder approach.

Why are you working backwards.
Do some comp work and find out what it's worth first. (as Holly suggested)

I'm sorry, but the question is silly. It ignores whether the asking price is lower than comps, same, or aspirational. An estate sale that someone is trying to unload quickly is quite different than a home purchased at peak price in 2007 then was over-improved and now the owner is seeking an outrageous profit. To simply say "I only offer 20% under asking price" makes no sense at all.

There's no short cut. Do your homework. Become an expert on your niche. Go to open houses. Read the listings. Know your comparable figures for similar homes. If you need a broker, I quite like Beth Troy who is fun, honest and serious: http://www.1townandcountry.com/html/agent.jsp?aid=7931&type=home

There are many good deals in the Hamptons now, but you need to really educate yourself on the market niche you are interested in so you can find them.

kylewest....thoughtful useful advice.

thank you, fg1

My post was assuming that you've done the research, and found that the asking is a good price.

I thought that went without saying . . .

Apparently, common sense isn't.

But needs, if the asking price is a 'good' price, why would you then waste time offering 10% under? The whole point is come up with a number you are willing to pay and perhaps offer slightly below that to allow for wiggle room upward. Doing a blanket 10% off for no apparent reason makes no sense.

bram....if you've done your research and established that the asking price is reasonable (i.e., not too inflated----or, in kylewest's lingo, "aspirational"), a bid 10% below ask will probably be taken seriously and produce a counter-offer.

Then you can make another offer.....and pretty soon you'll have an agreement.

Sure, YJBO, but I'm just not crazy about the idea of making an offer based on a blanket formula. Just offer what you're willing to pay, less a point or two to allow for a reasonable counter. Why bother with semantics?

YJBO, unfortunately, many brokers/sellers who list at aspirational prices get "offended" at lowball offers (though I wouldn't call 10% off a lowball myself). If you're comfortable playing that game, go for it, but you may have to be patient/professional to get through some of these more sensitive and unrealistic sellers before finding your deal.

Over the years, I have purchased and sold 8 homes and one office building.

I have done well with the 10% rule of thumb. I've generally closed at 5-7% off asking.

It's not for everyone, but the OP asked, so I answered, based on my personal experience.

needsadvice, there have been many posts in the past here asking for a formula regardless of how reflective of value the ask price is. People say things like "In this market should I make an offer of -20% asking price?" As so many others have said, I think it is at best a very badly worded question. Perhaps, taking what you say as the meaning, the better way to phrase the question would have been: "What negotiating strategy would you recommend for a home that is priced about 5% above comp sales?" or maybe "How do I begin negotiations if a property I like is clearly priced at 20% above comps?"

But in my experience, the people asking a question such as the OP did here have not done sufficient work to educate themselves about the market niche and are looking for pat answers that in practice will not serve them well.

My bro lives in sag and a very nice home across the street(waterfront dev, pool, newly renovated) started at 1.25mil and sold last yr for mid 700's. I think from this and what he is saying the market is really slow out there and there actually might be no or few comps
So offer what you think is reasonable and see what happens.

good advice. bottom line on news 4 ny today, it said nyc is down over 100,000jobs . this is a good time to be a buyer and sellers should be realistic with their prices. things will begin to rebound in about 4 to 5 years.
its good for everybody

I don't work the Hamptons, but since you clearly need local market expertise, wouldn't George Simpson know the answer to this question? I might call him and see what he'd charge to answer it.

ali r.
DG Neary Realty