What Should We Offer? What Will They Take?
A question frequently asked of agents by buyers once they have found a home that they like is:
“What will they take?” or, “What should we offer?”
The law of licensing does not allow an agent hired by the seller to quote a price other than the asking price of the property.
So what is a buyer without buyer representation to do?
The buyers would be better served by requesting that the agent provide them with a computer print-out of all the properties that have most recently sold which are similar to the property they are interested in making an offer on.
These comparables will give the buyer accurate and factual pricing information. The agent will then be in a position when they present the offer to the seller to advise the seller that the buyer arrived at their offer to purchase based on the most recently sold comparable properties in the area.
Offers to purchase based on fact and not fear or emotions are often received more favorably by the seller. Offers based on hearsay information are often withdrawn after acceptance, due to the fact that the buyer is unsure of the value of the property and fearful that they have overpaid.
A bank appraiser will appraise the property before a loan is granted. The appraiser relies on sold comparable properties to determine value. A buyer, with the help of a buyer agent, can do likewise.
It is important to remember that fair market value does not address intrinsic value, the private value that a property has to a specific buyer. A buyer that forms an emotional attachment to a property or has a rare need may sometimes pay more than fair market value, however the property must appraise before a loan will be granted.