Real Estate Negotations

ksanrio · Sep 11, 2013

I would like to know what is the general norm for negotiating a selling price when looking for a home?
Yes I know condition, location, supply ,demand, buyers or sellers market etc all play apart but just in general what is the normal practice?

For example if someone is asking 5 Million RD what would a good counter offer be? Or how much wiggle room is there usually? I know in some place people will ask for more than half of what there willing to accept while in other places there may be only a 5-10 percent negotiating window?

Any opinions would be appreciated

Thanks

K

MpJuly · Sep 11, 2013

+/- 20% but depending what you have for 5 Million RD and where... if the price is a deal don't think negociate a lot, also prepare your arguments !!

ctrob · Sep 11, 2013

There is no way someone here can tell you how much wiggle room is in your 5mil price. We have no idea what you're looking at. You really need to know your market, study your seller, and make an offer.

2020 · Sep 11, 2013

Please do not listen to your real estate agent on how strong the demand is (it's baloney)....we've bought 2 properties (Samana peninsula) and we got a huge discount especially when we walked and acted disinterested at one point.

Periodically, I'll look thru IT postings and many of the homes for sale. Many properties that were advertised 1 -2 years ago area still listed and confirmed readily available for sale. (at a reduced price!)

Keep in mind, it's not like in the US where people have easy access to mortgage financing. In the DR it's the exact opposite; thus, fewer buyers capable of performing.

mainegal · Sep 11, 2013

In order to counter offer on anything, you must first make an initial offer and if the seller doesn't like your offer, he/she will then counter that offer.

ksanrio · Sep 11, 2013

thanks everyone for the advice I was just trying to get an idea of how things work in the Dr.
I bought property in Trinidad and Tobago and the Philippinesand it's very welcome to go shooting the prices but in the US where the market was when I boughtI was going to be able to have him cover closing costs.so there are a lot of different variables I appreciate all the advice you guys getting me.

rover · Sep 22, 2013

Best advice I ever got for when negotiating with Dominicans was .......... If your initial offer doesn't embarrass you .. You know you offered to much

Criss Colon · Sep 22, 2013

RENT first, buy later, if EVER!!!!!
Not much reason to buy here.
You can rent a bigger/better house than you can afford to buy, and keep your money SAFE outside the DR!!!!!
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Expat13 · Sep 22, 2013

Criss Colon said:
RENT first, buy later, if EVER!!!!!
Not much reason to buy here.
You can rent a bigger/better house than you can afford to buy, and keep your money SAFE outside the DR!!!!!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

What if staying permanently or intend too? Is it better to keep your money outside in the ultra safe USA and bring it back monthly to pay rent- which gains no future asset-or put that same money into a property where you plan to live long term. I think if your in the retirement age than renting is better otherwise you will think back as I did after burning through 4 years rent here before I bit the bullet.

Olly · Sep 22, 2013

Ksanrio,
As I said on another thread most of the low hanging fruit has gone but there are still some distressed sales if you are lucky. So negotiations can be difficult. The cost of building has gone up and one real estate agent that posts on DR 1 has said that there are still some houses for sale that are less than the cost of building today.
So you need to think about that !

Olly and the Team

Manzana · Sep 22, 2013

ksanrio said:
I would like to know what is the general norm for negotiating a selling price when looking for a home?
Yes I know condition, location, supply ,demand, buyers or sellers market etc all play apart but just in general what is the normal practice?

For example if someone is asking 5 Million RD what would a good counter offer be? Or how much wiggle room is there usually? I know in some place people will ask for more than half of what there willing to accept while in other places there may be only a 5-10 percent negotiating window?

Any opinions would be appreciated

Thanks

K

The classic advice on this is "If you are not embarrassed by your first offer it was too high". This is even more apt in places like the DR that have less liquidity in real estate markets. In any market you price based on recent comparable sales but these can be hard to find.

Anywhere you are making a a lowball offer for anything it doesn't hurt to compile detailed problems with the property to use as part of your exchange. In some cases the seller can address your negatives rather than lowering the price. 20% below asking price doesn't seem low enough to be embarrassed by to me

rover · Sep 22, 2013

Remember one thing, selling a house or property in the D.R can take up to 10 years and the seller is well aware of this.

drescape24 · Sep 23, 2013

To the o.p.
I bought my property 3 years ago and it worked well for me. But that is me. I wouldn't buy for the short term because renting can be done at a decent price. If you are like me and don't like staying in rentals or hotels buying might work. If you decide to buy start low imho and look around. Its a buyers market. Good luck and enjoy the hunt.

Criss Colon · Sep 23, 2013

If I only had a limited amount of savings in my home country after a home/condo purchase here, and no constant additional garanteed income syream, I guess I might advise you to buy.
If you have a "Nice Monthly Income" outside the DR, I STILL SAY, you can rent a MUCH nicer, bigger, better located home than you can buy.
Most "Expats" chose not to die in the DR, if they can make that choice.
Medical issues often force them to leave, or the spouse dies, and they don't want to stay here alone.
They leave to take advantage of better medical services, or to be near "Family" in their home country.
They really wish, at those times, that they were renting.
No real estate to be forced to sell, if they even can.
Hard to see the "BIG", long term picture for some.

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william webster · Sep 23, 2013

well, that big , long picture often involves real estate... usually one's largest asset.

For me, my children endorsed the purchase here... in fact, if you have read any of posts, I'm in the process of 'doubling down'

I don't say it's for everybody, but to try and make a blanket statement about renting vs buying is a rather presumptuous comment.

Cris Cologne and I agree and disagree at times.. but the constant harp playing about not owning may not suit all people

Just saying......

ksanrio · Sep 25, 2013

Thank everyone for your great responses. I am taking into consideration all this great information.
I know I would like a second home in the Caribbean. I lived in Trinidad and Tobago and I must say the DR is has much better
beaches and old world charm and Spanish influence still (You would never tell Spain ever inhabited Trinidad LOL).

But seriously, If I buy I am not only thinking me but also my family. Yes my home in the USA is insurance for me but
my girl wants a family and so do I, so it would be nice to leave the children a family home when I check out. If it don't work out for her and I? Well, a vacation home in the land of beautiful women and beaches, great weather (I love tropical whether)
won't be so bad. Still lots to think about. I am coming down in November. Going to start looking at some houses and apartments and also comparing rents vs purchases.

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