When discussing a deal with me today, a very good broker I know said the following, about a deal a client had in escrow at $1.1MM:
“Well, it was listed at $1.3MM.”
I don’t want to pick on this broker, because he’s good, but this is a bullshit broker line.
As a buyer, you should not spend a single second of your time considering the asking price, let alone what the old asking price was.
Instead, you should carefully consider what the property is worth to you.
Well, if the asking price is higher than what the property’s worth to you, you’re either going to offer what you’re willing to pay or else walk away. And, if it’s lower than your estimation of value, it’s very likely the price will get bid up (because, if you can tell it’s cheap, then others can probably see that, too).
The key is to look at enough deals to get very comfortable with your own numbers. And then, once you are confident, you can/should just ignore what the seller and the brokers tell you.
Brokers are very good at moving deals along to completion. Then they walk away with their commission checks and leave you with the building. Better make sure you know what you’re buying.