So you've found a house you want to buy and you're wondering - what price should I offer for the property?
Everyday you read articles about how it is
"A Buyer's Market".
What does that mean ANYWAY?
1. There are more houses on the market to choose from than there are buyers willing to buy.
2. Prices have come down from what they were 3 years ago - some areas of the country have seen huge pricing drops but the Birmingham area for the most part has just tapered off some.
3. You don't have to rush to buy for fear someone will come in and buy your dream home if you wait over night. I said over night not weeks and weeks.
4. Sellers are more motivated to sell and are willing to look at offers that are not full price. They are also willing to leave items such as the refrigerator or pay the buyer's closing costs to make the home purchase work.
The other day, I was looking at an articles that talked about today's buyer's market, and it mentioned that buyers should offer as much as 20% less on the property than the sellers were asking. This IS NOT the case here in Hoover Alabama - or the greater Birmingham area.
I have had several low offers presented in the last year. Several of them caused the buyer to either loose the house - or end up paying more for it than they would have if they had made a reasonable offer. Now, define reasonable. This is where the experience of the Realtor comes in.
Hiring a realtor is a great investment. I am a realtor, but when I wanted to sell my mother's house in a different market, the first thing I did was interview 3 realtors IN THAT MARKET and get their professional opinion of what the property should sell for. I reviewed the information they presented and chose a list price based on their opinion. I received an offer yesterday on one of my listed properties and I asked the buyer's realtor the rationale behind the low price and he told me their realtor back in Mississippi was advising them of what their offer price should be - really MISSISSIPPI!! Why weren't they listening to their realtor here in Birmingham who works this market every day!!
Everyone has access to houses through the internet, however, realtors have access to other information.
1. They have sale information through the local MLS (realtor database) and tax records. There are internet sites such as Zillow which have tax info, however, the realtor also has the ability to interpret that information.
2. They have a network of other professionals that can help with question they may have.
3. They have the experience of being inside hundreds of houses in the area so they know how the house YOU are interested in rates against those other homes on the market.
With all this information, your Buyer's Agent can help you formulate an appropriate offer that can be well received by the seller, and get YOU the best price for the property. They should be able to give you an opinion, and back it up with facts. This will start the negotiation process off on the right foot.
There are many Homes for Sale in Hoover, Alabama that are priced right and some that are not. Buyers should look at what houses have SOLD for in the last 6 months and choose an offer price based on the fair market value of the property they are wanting. I have seen more than one offer this year that was totally rejected by the seller, and the buyer lost the house. I have seen buyers decide that they weren't going to pay more for the house in "this market" even though the house was priced properly, just because it was a buyer's market. In some cases another buyer came along and bought the house while they were waiting around for the seller to come to their senses!
Are you ready to buy that new home you've been searching for? There are many Homes For Sale in Hoover, Alabama and the greater Birmingham area. If you have any questions, I'd be happy to help you navigate the current "Buyer's Market", just let me know at Toni@ToniBird.com.
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