Great question!
1. Offer a ridiculously low offer – (Most times when buyers low-ball with their offer, they are not in a hurry to buy. If you continue to put low offers in, then your agent will have a heart to heart conversation to see if you are serious). If the property is in foreclosure, short sales or the house has been on the market for a long period of time, it may be acceptable. On the other hand, if it's a regular sell, the seller can become offended.
2. Offer what the property is worth – The agent will find out what the value is worth. It’s not an appraisal. It's called a comparable market analysis (CMA). The agent can also send the comparable properties over with your offer. There are other factors that the agent can consider that can be pleasing to the seller in order for your offer to be accepted.
3. Offer the list price – This is acceptable but make sure that the agent puts a contingency clause based on the appraisal.
4. Offer a little lower than the listing price – This is the most frequent choice that buyers make. Make sure you also see what the value is. Most times the buyers feels good mentally because they tend to think they have gotten a deal and the seller has already calculated their numbers a little bit lower than the listing price.
5. Offer higher than the list price – Offering more than the listing price is not highly recommended. It also depends on what type of market it is. About eight months ago, we were in a bidding war zone and buyers were offering way over the listing price. This is another time to have a heart to heart conversation with your agent to make sure that you understand what is going on.
Here are some things to consider on writing up your offer:
1. Have your agent call the other agent to see if they will give them an idea on what offer the seller will accept.
2. Make sure your agent will do a Comparable market analysis (CMA) to get a value on the property.
3. Trust that your agent will share facts to help you make an informed decision
4. Ask your agent to ask the agent can you present your office with them to the seller
Whatever your decision is, it's time to move your emotions out of the way no matter how much you love it; and never be afraid to walk away from a deal. Do not let the process frustrate you when you write up an offer and the seller does not accept. It’s not a one size fit all and that’s why it’s always important for you to have an agent that you trust, know the market, negotiate offers, and share information.
Karen Jones Lewis, Realtor
305-323-1556
K1 Realty Group
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