When You Make An Offer to Purchase A Home...Go The Distance

When a client is ready to make an Offer to Purchase on a home, one of the first things I do is determine how realistically the asking price is.  This is important because the closer asking price is to market value, the closer the agreed upon purchase price will be to that number, except in cases of hardship.  To determine market value,  I look at comparable sales in the last six months, days on market, whether the home has received other offers, tax value, and local market conditions, to name a few.   I present my finding to the buyer client in order to help them determine a good opening offer.

Of course it's human nature to want to get the best deal possible, I get that.  But the purpose of making an offer is, at the very least, to get the seller to counter offer, if not accept.  So if the home is priced relatively close to market value, and your initial offer is ridiculously low, the only thing you will have accomplished will be to have insulted the seller who'll shut you down.  

As an agent, I wish for homes to be priced correctly because they are easier to sell.  As a buyer, you have to be able to recognize it when it happens and react accordingly.  Your agent has done a lot of work to help you achieve your goal of finding a home in your price range that meets your needs; has done all the paperwork necessary to make an offer; and has researched comparable properties and market conditions so you can make an educated offer.  If you are a serious buyer, go the distance.  Consider all the information given to you by your agent and negotiate intelligently.  If both buyer and seller are committed, it should result in a meeting of the minds and an accepted offer.

Make an Offer That Sellers Can't Refuse

Make an Offer That Sellers Can't Refuse

Are You Ready to Make An Offer?

   Your real estate agent has shown you homes and you now want to make an offer. These days, everyone is looking for "a deal", but you need to be able to recognize "a deal" when you see it.

The comparable active and sold property information that your agent gives you should help you determine what market value is for this home and how asking price compares. The home may be priced above market value, but if it is priced belowt or at market, even if you made a full price offer you still would be getting a good deal.

Compare this home with the others you have seen in your price range. How does it rank among them? If it out-shines the other available properties, has more upgrades, better location, or a more appealing floor plan, for example, it will have more value than the others.

A seller offering to pay all or some closing costs, is providing a home warranty that transfers to the buyer at closing, or is willing to work with your time table also adds value. All things to consider.

In closing, a "lowball" offer does not guarantee getting a "good deal" on a home and may actually have more negative effects than positive. You have to be able to recognize a good price when you see it, and if you are a serious buyer, make an offer and negotiate it from an educated standpoint. Be realistic and stay focused on what you and your agent are trying to achieve - not the thrill of the game - and you will get the prize!