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Mistakes To Avoid Making When Making An Offer

By
Real Estate Agent with Keller Williams Realty Kingstowne/Alexandria, VA Office

The other evening I was driving home when I heard an analyst was being interviewed on a local news station about the market. Her comment was that it is a buyer's market. Being that it was a local station, although she worked for a locally based but national magazine, one could only assume that she was talking about the local market. Thinking it through, she was probably looking at things from a national level. Either way, both she and the station were doing a disservice to their listeners here in the D.C. area which has the most vibrant job and real estate market in the nation right now. There may be a few deals out there, and both prices and interest rates are pretty darn low, but the nicer homes are not languishing on the market for very long. Inventory is tight, and the really nice homes that are regular sales are even tighter. Two of my clients recently have been in situations where there were multiple offers and both homes sold in just a few days. Neither were willing to offer the asking price and that is what they needed to do, if not more, to secure the property

Needless to say, many home buyers have been brainwashed by the financial media into thinking that a low ball offer will be accepted for an updated, move in home in a prime location. In the Washington core that is unlikely. I cannot speak so much for the "way, way out" suburbs but relatively "close in" will require a strong solid offer.

The point is that you should not be misled by what you hear on the radio, tv, or read in the newspaper (or online) about the real estate market. Real Estate is local. It is even hyper-local meaning there are areas within communities that are very hot and others not so hot. That is why you need a qualified real estate agent, like myself, to help you determine what you should pay for a property. I close now with a link from marketwatch concerning low ball offers.

 

Comments(5)

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Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

I was one of the popular online home sites the other day just killing some time. Under a foreclosure the caption read "foreclosures typically go for under the asking price". In my market foreclosures tend to go ten thousand or more over the asking price. What's a buyer to believe.

Oct 16, 2011 02:26 PM
Faith LaRosse
Springer Realty Group - Limerick, PA
Serving Berks, Chester & Montgomery Counties

I totally agree Tom, far too many people listen to MSNBC and other national broadcasts spreading doom and gloom and don't realize how very local your own real estate market truly is. 

Oct 16, 2011 02:26 PM
Ross Therrien
Prudential Verani Realty, Londonderry,New Hampshire - Londonderry, NH
Realtor, Broker Associate

Same conditions exist here in southern NH.  Even when the property is listed well below "market value" and the buyer knows it, they'll low ball it anyway.  Still the sweet properties, ie. fine condition, neighborhood and well priced are selling in under 30 days.

Oct 16, 2011 02:41 PM
Mike McCann Broker - Mach1 Realty
Mike McCann - Broker, Mach1 Realty Broker-Auctioneer Serving Nebraska - Kearney, NE
ALL Types of Property For Sale 308-627-3700

I totally agree that very few in ANY media know the market anywhere period.  There is no reliable and accurate source and I am not sure there ever will be.

Most media believes the first thing they hear or see and/OR just copy what someone else in the media has said, written, or posted.

Oct 16, 2011 02:52 PM
Tom Robinson
Keller Williams Realty Kingstowne/Alexandria, VA Office - Fairfax, VA
Experienced Real Estate, Professional Serving No. VA and DC

My experience is that because buyers are so confused on what is really happening, I have to go with what they want to offer (Legally, I have to anyway) so that they can see for themselves when they lose a home or two. One of the two buyers mentioned in this blog has said the next time he is offering at least list price. Sometimes, it just takes a little time. We have to just be patient.

Oct 17, 2011 03:04 AM