What should we offer? What will they take?

By
Home Builder with Long Island Cash Home Buyer
https://activerain.com/droplet/4cr8

 

 

 

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 Offers based on hearsay information are often withdrawn after acceptance, due to the fact that the buyer is unsure of the value of the property and fearful that they have overpaid.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. 

 

 

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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 05/09/2012 10:42 PM
  2. Dawn Maloney 05/09/2012 11:32 PM
  3. Jennifer Spanbauer Brodoway 05/10/2012 07:25 AM
  4. Pam Dent 05/10/2012 11:04 PM
  5. Leslie DeLuca 05/12/2012 05:09 AM
  6. Gabe Sanders 05/13/2012 08:21 PM
Topic:
Home Buying
Tags:
buyer representation
comparables
intrinsic value
what should i offer
what will they take

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Rainer
45,094
Legacy Property Group
Legacy Property Group - Mountain View, CA
South Bay Property Manager- 650-241-3888

the number never lie. 

May 10, 2012 09:22 AM #16
Rainmaker
985,408
Beth and Richard Witt
Long Island Cash Home Buyer - Huntington, NY
Long Island Cash Home Buyer 516-330-6940

Thank you all for taking the time to comment on my post... I hope it was of some value... Happy Evening to All

May 10, 2012 10:05 AM #17
Rainmaker
511,228
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Debbie's answer above is the correct answer. No one knows what a seller will take until the paper is on the table. Everything else is just speculation.

May 10, 2012 10:08 AM #18
Rainmaker
1,005,518
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

My usual answer to those questions is... "I don't know, but I know a great way to find out."  I then write an offer with them, and submit it.  It usually works.

May 10, 2012 10:19 AM #19
Ambassador
1,704,310
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

It is always best for the buyer to have the assistance of their own agent. However, if they insist on going it alone, the comparable properties will give them an idea of where to start. That's more than they'll get from an on-site agent for a builder.

May 10, 2012 12:23 PM #22
Rainmaker
1,317,651
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I feel very strongly that each party should be represented.  Dont' get me started.

May 10, 2012 01:11 PM #23
Ambassador
2,010,522
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Richard - I also figure they should consider how they'll feel if they lose it when making an offer.

May 10, 2012 04:01 PM #24
Rainer
385,881
Edward Gilmartin
CRE - Boston, MA

It is best to look at comps with the buyer...and then ask the buyer what they think the property is worth.

 

May 10, 2012 09:59 PM #25
Rainer
191,369
Bill Fields
Bill Fields Learning Systems - Treasure Island, FL

Fear is the most basic of emotions and everyone is worried about the same thing, making the wrong decison. That's why so many people chose the only guaranteed way not to make a bad decision, and that's to make no decision.

May 10, 2012 10:39 PM #26
Rainer
329,208
George P. Cruz Sr.
DR Horton - Port St Lucie, FL
PSL FL CDPE, TRC, CIPS

Asked over and over and over again and again..

 

 

 

 

May 10, 2012 10:41 PM #27
Rainer
180,965
Chris Jenkins-Sarasota Realtor
PalmerHouse Properties - Sarasota, FL
"Expect Success"

Yes, asked all the time by unrepresented buyers... often by buyer's agents too who should know better!  My response is to hand over a list of comps and say "the seller is expecting a 'market' price for the home based on the recent comps".  Sometimes I'll highlight the most salient comps too.

May 10, 2012 11:01 PM #28
Ambassador
525,951
Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

This is an excellent informative post.  It is always best to concentrate on the numbers and keep emotion out of it as much as possible.

 

May 10, 2012 11:06 PM #29
Rainmaker
370,513
Travis "the SOLD man" Parker; Associate Broker
iXL Real Estate-Wiregrasss\ - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

I ALWAYS let them state the price they want to pay first, then I may help them modify it with the 2 "C's" - Comps or Common Sense.

May 10, 2012 11:35 PM #30
Ambassador
681,624
John DL Arendsen
CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS - Leucadia, CA
Crest Backyard Homes "ADU" dealer & Contractor

Up market, down market, buyers market, sellers market, location, schools, comps. Lot's of variables in this ole RE world today that bring price questions to the surface.

May 11, 2012 01:13 AM #31
Rainer
201,518
Debbe Perry
Real Living Carolina Property - Morganton, NC
828.439.3084 Morganton/Lake James NC

Terrific reminder - off to do a CMA for my buyers now! Thanks for the great post!

May 11, 2012 01:42 AM #32
Anonymous
Kelvin Wallin

I agree that buyers should have professional representation and as many facts as possible to make an informed offer.  Further, they should be presenting the offer with a pre-approval or POF letter showing the seller that they are serious.  Good reminder to all of us to have current CMA information.

May 11, 2012 03:00 AM #33
Rainer
486,759
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Karen, #20 has a great reply, doesn't she? 

May 11, 2012 04:31 AM #34
Rainmaker
1,431,531
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

A better question is what is this home worth in comparisom to the comps?  and how will it appraise?  

May 11, 2012 11:04 AM #35
Rainmaker
848,657
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Richard,  amazed at the number of buyers who do not afford themselves of a "CMA", and the number of agents who do not offer it!

May 11, 2012 09:33 PM #36
Rainmaker
985,408
Beth and Richard Witt
Long Island Cash Home Buyer - Huntington, NY
Long Island Cash Home Buyer 516-330-6940

Thank you .... one and all for your comments... Happy Day to one and all!!!

May 12, 2012 12:53 AM #37
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Rainmaker
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Beth and Richard Witt

Long Island Cash Home Buyer 516-330-6940
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