A Buyer's Agent's Responsibility to Help a Buyer Make a Good Offer
The media has been reminding us that it has been a buyer's market for quite some time now. This has portrayed the misconception that buyers should be submitting offers at least 20% below list price. Although this is a great time to buy, submitting such low offers can cause buyers to pay more for the house in the long run.
What can happen if you submit an extremely low offer?
Sellers can simply say no without even a counter offer. Sellers must counter offer when they receive an offer right? Wrong, if your offer is too low to begin with they can simply deny your offer and end the lines of communication.
The seller may be offended by the offer. Once this happens the transaction becomes more emotional and personal. Selling a home is always personal, but once negative feelings arise sellers often let their feelings dictate their decisions rather than the facts and the bottom line.
The seller may counter offer, but the amount of counter offers it may take for the buyer and seller to come to an agreement may begin to frustrate all parties.
Once frustration sets in, all aspects of transaction may become stressful and difficult. It could even leave the seller with feelings of bitterness. This can in turn cause them to be less willing to accommodate you in any way through out the transaction, including but not limited to their willingness to
- make repairs following a home inspection,
- easily allow appraisers, inspectors, etc entry to the home,
- the scheduling of a settlement time ...
You get the idea !!
The initial offer of a home buyer should be a strong, motivated offer. Having the advice of an experienced buyer's agent can make all the difference in the world. Equally important, is listening to that same advice. Your buyer's agent should use the MLS to find comparable properties that have recently sold in close proximity to the home you are considering and review them with you. This will help you determine a fair price and make a strong, intelligent offer.