As easy as making an offer on a home seems it can be very difficult for some to do. As an agent I get asked all the time "what do you think we should offer"? I technically cannot tell you what to offer just provide you with market data and support in order for you to make an informed and comfortable decision.
My approach is simple; we need to make an educated offer. An educated offer is one where we have analyzed the most recent, comparable sales data to the subject home. It is very important to compare Colonial homes with Colonials because it's not ideal to compare them to a ranch. If a ranch is the only comp then you will have to adjust a bit because Colonials typically bring a higher dollar due to popularity. Another very important factor is how close to the subject home the comps are, sometimes you have to extend beyond the 1/2-1 mile radius.
This is the same data a bank appraiser is going to use and hopefully the listing agent when determining a price for the home. The reason we use sold data is the price a home actually sells for determines value. In regards to active listings, the seller can ask anything they want for a home but if there isn't a buyer that's willing to pay that price then guess what, your home isn't worth that price. The active listings will just be your competition on the market if you are a seller. In that case you will want to position yourself as the best value amongst the competing homes.
We take the sold comps and couple them with your level of interest in the home, supply levels, and what you truly feel it's worth to YOU. With that we formulate our offer. When presented we can let the listing agent know how we came to our number and that will give us ground to stand on. Sometimes this means paying the asking price and above. In a market like we have in Westchester at the moment, supply levels are low, competition is swift, and homes are disappearing quickly. So many Westchester County home buyers are willing to pay above ask in order to get that home they love.
Lastly, a good offer isn't always about the price, the terms can make or a break a deal as well. As a Westchester County Buyers Agent I always advise the buyer make an offer contingent upon a satisfactory home inspection and their ability to obtain a mortgage. In some cases buyers do waive one if not both of these in order to "sweeten" the offer a bit. You have to feel comfortable doing this and if you aren't then that is how it will be. Having nothing to sell, the ability to break a lease at any time, and being flexible with the seller on closing timeframe can also help you.
Lastly, make sure you team up with an agent that understands the multiple bid climate and can provide you with sage. This means discussing options before you encounter a multiple bid scenario so you are fully prepared and know what you are willing to do. Acting quickly is paramount.
I love giving my buyer clients the knowledge and tools they need to make a comfortable decision. After all, I want you to love the home you purchase!
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