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[quote=Anonymous]I did this twice, once as a buyer and once as a seller. As a seller, we sold a townhome to tenants. because it was a townhouse we had a very comparable comps to work with and so we went with that. This was in 2016 in a desirable part of DC. We had previously lived in the house and were trying to sell before the date by which we would have to pay cap gains taxes so that decreased our leverage a bit. We ended up accepting a price that was about 3% below the comps.

When we were the buyers, the seller was planning to put his house on the market in a few months and had not started fixing it up yet (it needed to be repainted and staged - nothing major). he was clearly in no rush to sell - we found out about the same through a mutual friend. The seller gave us a range of sales price estimates he had gotten from realtors. We offered 3% less than the midpoint of that range "as is" and waived the appraisal contingency. He accepted that offer. it is possible we overpaid a bit (we got no proof of the realtor's predictions) but we generally thought the range he gave us was reasonable based on the (many) homes we had seen and we were buying into a very tight real estate market and had to be moved in by the start of the school year. our alternative was to rent for a year, which would have cost us about $50K, so we were OK overpaying by about $50K (I think we overpaid by less than that - and regardless the house appreciated $200K in the next few years).

In both cases, on some level who has the leverage comes down to what each person's BATNA (best alterative to a negotiated agreement) is. The seller clearly has a pretty good BATNA since it is a tight real estate market. Only you know what your BATNA is. How much do you want this house?[/quote]

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