What Should I Offer?

By
Real Estate Agent with RE/MAX Results 20344949

Now more then ever buyers are conscious of getting a good price and rightfully so. The market has came down and with the economic reports we are led to believe it will get worse, so those who are buying want to make sure the price is low enough that if the market drops further they still are sitting good.

That being said - WHAT SHOULD YOU OFFER?

Here are some common ideas of offers I hear from buyers:

1)  Buyer wants to save $15,000, so they think they should offer $30,000 low and hope the seller meets them in the middle.  The challenge with this theory is that you risk coming in too low and offending the seller or loosing the house to another buyer.

2) Buyer wants to get the lowest price possible so they think it's wise to really low ball the seller to see what they will come down too. The challenge with this is that most low ball offers are rejected, so what did you gain.

3) Buyer wants to save $5000 no matter what just because they should not pay full price in this market. The challenge with this would be that many homes are priced to sell now and get multiple offers. Not every home needs to come down in price.

SUMMARY: Houses sell for what someone is willing to pay. If you have been looking for a while you know what is a good home at a good price and those homes sell fast and often at full price.  Many people are buying homes now because of the LOW prices and LOW interest rates. 

I work hard to get my buyers a great value on the home they want, and sometimes to do that you need to pay full price.  Sellers who are smart are pricing the homes low to attract a lot of interest and multiple offers even in this market.  So be ready to pay asking price this Spring.

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Chuck Carstensen is a Realtor with The Discovery Team at RE/MAX; helping buyers, sellers, and investors of residential real estate.  He is a Dynamic Life Coach; The Discovery Coach- "Helping you discover your talents, desires and purpose." Carstensen is a speaker and co-author in the best selling book series Wake Up...Live the Life You Love: Your Wake Up Moments (NOW available go to http://tinyurl.com/wakeupmoments).

 

 

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Chuck Carstensen is a Realtor with RE/MAX Results in Elk River and Cambridge, MN.  Helping buyers, sellers and investors in great Minnesota counties like Sherburne, Isanti, Wright, Anoka, Chisago, Hennipen and Mille Lacs. He is a Certified Distressed Property Expert (CDPE).

Contact Chuck by emailing him at chuck.carstensen@results.net or by phone at 612-290-3809. 

 

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Rainmaker
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Corey & Erika Kahler
The Cascade Team - Kirkland, WA

I think this is where a great CMA on the house they want to buy is an invaluable tool. The buyers need to know the whether or not the home is priced right before they try to lowball an offer.  If the CMA back them up, you can include this information in the offer. -Erika

Mar 05, 2009 07:04 PM #1
Rainmaker
56,348
Marvin de la Vega
Realty Source Inc - Chula Vista, CA

I agree with Erika. Also, what most buyer's are not coached on is to see the property and it's pricing from the seller's perspective. Role reversal often brings buyers to their senses before a low offer is generated. It's not only what a buyer is willing to pay, but what a seller is willing to accept...

Mar 06, 2009 02:06 AM #2
Rainmaker
112,992
Randy DeLaMare
Realtypath LLC - Salt Lake City, UT
Helping friends Realize their Real Estate Dreams

Nice post Chuck, it is interesting how the buyers market has worked people. I have noticed that many people are pricing thier homes to sell and still the buyers think they need to beat up the sellers for ridiculous offers. All of the short sales don't help the situation much either. The CMA comments above are very helpful.

Mar 08, 2009 05:46 PM #3
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Rainmaker
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Chuck Carstensen

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