Buying or Selling a Home/Condo purchase

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Question
I am planning to buy a condo in MD. I want to buy on full cash basis. Please advise what %age of price reduction I can expect from the listed price. Also what is the average price difference if the condo is on ground floor Vs 1st floor?
If the condo is on Foreclosure how much Reduction I can expect on full payment basis.
Thanking you in anticipation.

Answer
You're going to want to hire yourself a buyer's agent to help you navigate this purchase.  The buyers agent will help show you homes, and will have the experience and knowledge to help you with offers and the seller pays the buyers agent so there is typically no cost to you.

The reason I say this is there is no set percentage of price reduction to expect from the listed price.  In some neighborhoods, the list price to sale price ratio is 97% and in others, it can be considerably lower.  It depends upon how the seller prices the condo.  Some price low to sell quickly, and others price high to see how much they can get. There isn't necessarily a price difference floor-by-floor, again depending upon the location.  

As far as foreclosures go, the banks are also trying to get as much as they can get for their REO properties, however you don't have to worry about insulting them with a low offer because there is no sentimental attachment when you are dealing with a bank.  Many times banks won't go as low as you'd think, especially in nice neighborhoods in Maryland.  Some listing agents will have them painted and fresh carpet put in, along with other fixes in order to get a similar price as a standard sale condo.

In all situations, a good, aggressive buyer's agent should write the offer for lower than they think you will get so that you don't leave money on the table.  With your paying cash, you can likely get a really good deal in a neighborhood that has over 15% delinquencies on their condo fees, which would mean they can't accept normal financing.  You'll want to be careful and look at their financial sheets to make sure the neighborhood is stable, but in many of these neighborhoods, if the delinquency isn't too high (the condo association is stable enough) but is high enough currently to not allow for standard financing, you can find really good deals.

I wish I had a more simple, cut-and-dry answer to your question, but I think it would be a disservice to you to give you state-wide statistics because every transaction is so different.  I can refer you to a good agent in the area you are looking in if you'd like to interview agents!

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Lisa Webber

Expertise

With over 10 years full-time experience as a Realtor in the Central to Southern Maryland area, I can answer questions pertaining to buyers and sellers of residential property in the state of Maryland. I also enjoy sharing information about real estate in general when I can. I work with first-time buyers, real estate investors, luxury home buyers and move-up buyers. I represent buyers when they are looking for new construction as well. I can help with relocation questions as I help people from all over the country move to Maryland. I also work with military families, helping them move to the Ft. Meade area. With many years of experience helping clients purchase distressed properties like foreclosures and short sales, I am well-suited to look for and point out any potential problems that you might face. I can help with finding financing through many local experts as well. I continually post real estate related information on our Facebook page as well as on our website, www.webberteam.com.

Experience

I've worked with many buyers and sellers of residential property throughout the state of Maryland as well as investors who buy and sell residential and commercial properties.

Education/Credentials
I primarily have studied real estate, business, advertising, and marketing and study each of these subjects on a daily basis as they relate to my work. I read real estate books and subscribe to news services to keep current on real estate subjects and trends.

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