How Much Should I Offer on a Home?

In today's Seller's Market ... if a Buyer wants the house they need to trust the Agent who is working with them, hopefully as their Buyer's Agent and be willing to pay over the asking price, especially if there are multiple offers in. There are no Steal Deals in today's market of Low Inventory levels.

There is no substitute for 'knowing the neighborhood" values.

Sounds like you had a rookie (investor) buyer! (it might take you a year to educate this one,  if ever)  I'd like to hear your follow-up on this buyer

However, the best answer to your question is:  make your best offer, that if someone makes a higher offer you wouldn't be disappointed. (like good for them as they got some bigger ones (kahunas).

Great subject....

I agree with Margaret Goss--I will give a buyer comparable information and market conditions, but I will not tell them what to offer. I am working with a buyer now who says that agents in NY and NH have told him what to offer on a house, but that is not how I work. I will tell them once they give me a number if it is way out of line. But they are still free to name their price and let the seller decide.

Dear Beth,

Data shows you how to handle an offer. You cannot bid for two years ago.

The numbers don't lie, I airways instruct my clients that their offer should reflect their desire to purchase the home, and ask then at what point would they be sick if they did not get the house.

Beth, what a great way to educate the consumer.

Myths abound in real estate. If a buyer is not working with a knowledgeable and professional Real Estate Agent, they are ignoring one of the great resources available to them.

Thanks for sharing.

I find some  buyers are more curious than serious about buying a home. 

Thanks for sharing your post.

Wiggle room. Sometimes there isn't any and buyers who think the seller will come down can find out no they won't, no they don't. When the sale goes pending on its' way in the direction of a real estate closing.

You share some great advice about making an offer. The answer is, it depends!

A low-ball offer in San Diego?  LOL!  Good luck with that!  Great advice Beth 

Thank you for sharing.  The key to making the right offer is to choose a local agent who knows the market and can give best advice on comparisons although buyers have to realize that price is only one aspect of buying a house.  They need all the facts.  Inventory is currently low in my area and it is now a sellers marketing resulting in multiple offers for the first time in my career.

Great article.  Every situation is differnent and there is no cut and dried answer for all situations. The key is to work with someone who knows the market and can guide you to the right answer for you, the buyer or the seller.  If you've seen a proper market analysis and toured similar homes then you should be in a good postition to make an acceptable offer.  Some people prefer to negotiate even when the market is showing that properties are priced correctly. In a seller's market putting your best foot forward is typically the smart way to go. Having a knowledgable professional in your corner and listening to their advice is the best way to get the deal done.

Thank you for the great advice to homebuyers! It is sometimes frustrating to work with buyers who think that they know better and won't offer the asking or fair market price. Aloha!

It depends on who the professional is, doesn't it? I've seen many professionals who are fearful of losing an income opportunity and are simply order takers regardless of the circumstances, suitability or reasonability of closing a real estate transaction. The true professional is fearless and can always decline to represent a client who is unreasonable, uncooperative or reluctant to accept his advice or strategies. 

Some Buyers are just "cheap"!  I have one that has lost at least 6 because they are still living in the 80's.  In our market when a "good" house is listed and it's in a trendy or stable neighborhood, you better be prepared for multiple offers and to go over list price.   Sellers review a handful of offers and pick the one that is very clean, has a reputable lender or cash and can be reasonable about closing.  This will eventually change but right now you better be ready to  spend some bucks and act fast.  Taking a few days to "think about it" doesn't work in 2018.  Nice post by the way.  Some good points!

I liked this post b/c besides offering good advice--it was a funny too!

Love it!

On point, Beth.  This is a must see for those that don't understand the process.  Ah, so much information and so little time.  We can't save them all.

You make it seem so easy to make offers based upon emotion rather than reality.  

In a current Seller's market in most of our ara...either you write with your Big Person pants on....or lose the opportunity to  own the home !