how low can you go

upto 10% below is ok in this market, in my opinion. i put a 15% below asking, and the seller decided not to counter. btw, it's been over a month now, and it's still on the market.

Don't pay attention to the asking price, look at comparable apartments that have sold recently in the area, and for what price. Then you can calculate the price per square foot, adjusting of course for the condition.

for studio and 1br, few %. On 2br+, you can try upto 10% but realistically you are looking at 3-5% on new constructions.

Use Maintenance, RE taxes to leverage on your offer.

depends on the new construction, though - those outside of "prime areas" (e.g., in harlem) have been dropping prices. I came close to making a bid on one of them (then asking $980, I was planning on bidding $900). Since then, they have dropped price to $890, and last I spoke to broker, they were willing to negotiate further.

Agree with TLoveless. Ignore the ask and figure out a good starting point for a negotiation based on comparables and market conditions. I made an opening offer ~19% lower than the ask for an UWS co-op (which I thought was overpriced) and they seller countered and we ultimately landed where I wanted to...upshot, do some work and it can't hurt to lowball, especially in these markets.

First-time buyer here too. Do these general guidelines still apply to "old construction"? Just put in a bid at 5% below asking on a co-op 2BR walkup in a "prime" neighborhood. Would come out to $1063/sqft. Reasonable?

bjw2103 these guidelines should apply to any type of building. Key considerations:

How long unit has been on the market

Prices for comps that have recently sold, as well as those on the market. Consider ammenities such as doorman, proximity to park/subway, floor, maintenance, etc.

If it's a coop consider the board - do they have a reputation for being tough (a good broker can tell you)? High financing requirements? Assessment coming up? These are things to consider for resale value so you can discount in your offer.

Gauge seller's motivation by asking why unit is on the market (is seller upgrading? baby on the way?
estate sale and squabbling heirs want to sell asap?)

Also, ask for how long seller has lived in the place - if it's 20 years they'll most likely be making a profit even if you lowball vs. someone who's been there for 2 years

bjw2103,
this is just my opinion but I'd go with a new construction condo for $1063/sq.
1) Easier to sell/rent out...condos generally go for more $
2) No coop board bull crap
3) Lower maintenance and RE taxes (espec with abatement)
4) New construction with new appliances.

if the maintenance on that coop is more than $1/sq a month, walk away or offer $800/sq

I offered $500k for a 1 bedroom off park avenue in murray hill(675 sq ft)....asking was 560k......mtce was 770.....is this a reasonable offer?

btw2103, I think it all depends on the location, comparables in the neighborhood in which you are buying, whether the apartment is renovated, etc. I don't have any information, but my guess is that if you are buying in a typical UWS/UES brownstone walkup, you're probably in the right zip code if the apartment is nicely renovated. I'm not a fan of new construction, personally. As they say, they aren't building any more pre-war (disclosure: I own a 2BR UWS co-op). Good luck!

Is 675 sq ft a one bedroom or a large studio??

ba294, where are you going to find a "prime" location new build condo for $1063/sqft? I don't think that is realistic.

Mhillqt, does the unit have a doorman/elevator? more info needed for a better answer.

if you're going to submit a lower bid you should be able to justify it with comps/ammenities, etc. it tells the seller you know what you're talking about.

Thanks for the tips guys, you've been really helpful. Just to clarify, my offer is for a pre-war walkup in a prime downtown neighborhood. The maintenance is quite high (~$1.50/sq ft) given the lack of doorman/elevator, which is why I think going in at 5% below asking was pretty justified. From what I know the board's pretty lax, which helps. Broker told me there are 2 other bids in as well, so I'm hopeful mine was good enough. Not too many comps just because I haven't seen too much at this price range in the neighborhood.

Mhillqt - Cliff 702 here from the WSJ article board. Good luck with your offer. The owner may counter offer. As you negotiate, try to put dollar figures on improvements that may needed, rather than just throw out a figure. For example, suggest you'll want to work on the bathroom and it will be $5000, or the kitcher renovation will be $15,000, or floors or carpet will need an upgrade for about $3000. Use reasonable estimates. (When I was more into this with houses, I always brought a contractor (rather than a home inspector) to look at the property and give me prices on improvements and repairs. This gave me credibility with the seller - real issues with real dollar figures, not just my subjective ideas and my greedy desire to get a better price!)

I hope this works out for you and that 10 years from now it's a millon dollar apartment.
And, since I should follow my own advice, I hope to find something to buy before my lease runs out in May, 2008.
Please keep us posted on the progress of your purchase.

Juiceman,
there are many for that price range. Charleston is around $1030/sq

Ok, well the apt is a small 1 bedroom(675 sq ft) in a pt doorman building, no pets and in prime murray hill...the building has no other amenities other than pt doorman......i told the broker that i wouldnt bid higher than 500k...price was listed at 560k......after disclosing all my financial information to the broker, he submitted my bid and the seller cameback with 550k......so its obvious that the broker didnt say anything about me just wanting to pay 500k....and that i wasnt interested in negotiating...im sure he also new that the seller would never accept 500k but still continued to get all my personal information for the bid....i know that all bids must be submitted (i think) but it would be nice if the broker could speak to the seller and not accept bids that are not within their range and not have to disclose income, assets, retirement informtion......im really turned off to realtors and i have a license myself that i never used!

Mhillqt I've never heard 'Prime" and "Murray Hill" used in the same sentence......are you out of your mind?? Do you really think that someone is going to bail you out of that P.O.S. in 5 years at a level for you to get out whole after you pay all the transaction costs?? Sucker born everyday, I have a prime Harlem place to sell you as well, sucker

what the heck are you talking about tweedledee....PRIME Murray hill is e34 to e39 between lex and mad...this apt was right off park avenue.........why does everyone on this board have to be so combatative and rude....it amazes me how mean people can be...

Mhillqt - I would ignore that seller for a while. Things are going into the holiday freeze, and if you want to really get the price for less, it needs to sit on the market for a while. Keep hunting. I once had a seller come back me 5 months later and we were still able to put together a deal after the place fell out of escrow. (And I PriceChopped them as a penalty!)

Murray Hill is a very nice neighbourhood. I love 32nd & 3rd ave