This is a great blog post by Endre that points out an big issue in today's Real Estate Market. We all want a deal, but a deal at someone else's expense is really not a deal. Just saying!
We are ready to make an offer: How much did the Seller pay for this Property?Just recently I was asked by a first time buyer this question.
Great question if you are curious or if you want to know if the seller is underwater due to higher loan to current value. If you know the answer to this question you can make a better offer and get an understanding of what to potentially expect as far as upcoming negotiations. I also think the next question that needs to be answered at the same time is what are the recent sales comparable to the subject property we are about to make an offer. I also find it is important to see what the active inventory is as well.
Keeping in mind, when this question was raised, my buyers already had the answer to the Active as well as the Sold properties.
What I had to educate them on is: The answer is a nice to know information; it is not the impetus to submit a low ball offer just because the seller is going to have a profit on the transaction. The primary focus is what the true value of the home?
The Offer should be a fair offer to all that way the Buyer & the Seller will be happy and it assures a smooth negotiation with the ultimate goal of the transaction closing.
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at firstname.lastname@example.org or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations