We are ready to make an offer: How much did the Seller pay for this Property?

Reblogger
Services for Real Estate Pros with Marketing with Kate

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!  

Original content by Endre Barath, Jr. 01238708

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 homes@endrebarath.com  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

 

 

 

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Comments (7)

Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Kate, great post to put up again.  The 'true value' is the bottom line.

Jan 27, 2011 09:40 PM
Nina Rogoff
RE/MAX Executive Realty - Medfield, MA
Sells Real Estate!

Thanks for re-blogging this, Kate. This is a good point. The sellers are going to tell the buyers to "forget about it" if the house is properly priced and the offer is too low. I like Endre's point...a buyer and seller should both feel good about the results of the negotiation.

Jan 28, 2011 01:09 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Kate - I have to disagree with the post.  We have a fiduciary responsiblity to our clients and we are not supposed to make a "fair" offer.  We are supposed to operate in our clients' best interests.  I personally won't work with clients who want to make lowball offers as they destroy my reputation with other agents, but I sort that out upfront.  I want my clients to get the best deal possible and I don't care if it's "fair".  The seller always has the right to refuse the offer or to counter with another offer.  That's the basis of negotiation.  However, I firmly believe that the client makes the decisions.  I am their agent and provide advice and counsel, but they call the shots.  I had a client who wanted to make an "unfair" offer on a property that was already listed below market value.  I warned him that since it was a bank-owned property he was unlikely to get it at that price and someone else might come in with a higher offer and he could lose it.  He said he was okay with that.  Guess what, the bank accepted the offer and we close on Monday.

Jan 28, 2011 11:38 AM
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

Dan, it is a good topic of discussion.

Nina, you are welcome, creating win/win situations are best for everyone.

 

Jan 28, 2011 11:44 AM
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

Gail,  I'm not talking about fiduciary responsibility here.   This post is about values and to no small degree, greed.  There seems to be a certain "hunter" and "hunted" frenzy going on that is not good our country or our people.  I believe in creating win/wins, somehow it seems that I'm the only one that does though!

Jan 28, 2011 11:51 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kate thank you for the reblog and your points augment as well representing what I tried to get accross.

Jan 28, 2011 01:30 PM
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

What the seller paid is irrelevant. Whether the seller paid one dollar or a million dollars for the house, the only thing that matters is today's market value.

Feb 04, 2011 01:04 PM