What IS the right offer to put on a home?

I often hear the question, what should I offer? Or, what’s this house worth? In today’s market, recent comparable sold properties are essential in determining what an opening offer should be. If a home is priced reasonably from the beginning it won’t be on the market long; truth be said to you sellers, this is not the market to be testing at a unreasonable higher price point “just to see”, you simply do NOT want to play that card in this market.

So, how does a buyer determine an opening offer in today’s market? There are many variables when answering this question, the best way is to have your agent provide you recent Sold Comparables of “like” homes in the same location, same schools, and sq footage etc. Yes….(!) Location is significant, we are all bombarded by the media writing of double dip markets, and where the market is headed, yet, keep in mind they are talking on a national level, there are areas that are stabilizing, as well as re-emerging markets. KNOW your market. Use your realtor and get informed, they have the particulars on the location you wish to purchase in; your agent is a valuable resource, and will have current data.

Do your HOMEWORK:

• See RECENT comparable sold properties, the idea is to see how the data stacks up against the home.
• Why are they selling? You may not always get this answer, and seller agents do not have to disclose this info. MOTIVATION IS A FACTOR.
• How long has the home been on the market? DOM (Days on Market) IS important to look at. Also, have they reduced the home?

If a home is reasonably priced, a reasonable offer will get your closer to a closing without getting anyone angry. If the selling price is unreasonable, back up your offer supported by data.

Low Ball Offers: There are buyers out there who are throwing out low ball offers just to see if something will stick, yet low ball offers anger and insult, use the comps to come up with an offer the seller will counter too.

Ok. What’s worse than a low ball offer?

For me, an unreasonably priced home, where the seller doesn’t want to budge or counter, and the offer was reasonable offer and backed up by actual facts of the current home market.

Reasonable offers typically don’t anger sellers. Your seller might accept a lower priced offer with the right terms for them.

Terms:

How soon can you close? Is it a cash deal? No mortgage contingency? Your terms can make all the difference when negotiating.

There are many emotions during the sale of a house; if both buyer and seller cooperate and negotiate with the other’s interest and need in mind, it leads to a win-win situation. By going in with cut-throat, winner takes all manner, it only brings about adversity. The art of negotiation is the reaching of an agreement that is favorable to both parties, conversely, if you go in with a fixed mind set, you will likely be backed into a corner, and no one wants to be there. More and more deals fall apart these days, and not just in real estate, due to a lack of civility, it definitely takes two willing parties to make it happen.