Great question! And, a very common question. You found a home to buy and you wonder, should I offer the full list price, should I come in low or just what should I do?!
Today I’m going to tell you how to crack the code on knowing just how much money you’ll offer the Seller for the home they’re selling. We’ll be analyzing the local Real Estate market where the home resides, how close to perfection is the home you want to buy, what type of Buyer representation do you have and is time on your side, to name a few. Once you understand and recognize these circumstances you’ll be well equipped to be on your way to buying a home in Coral Springs or neighboring southeast Florida cities or anywhere in this great nation, for that matter! This will affect all first time home Buyers or the experienced home Buyer alike.
We can crack the code by answering the questions below. Our answers will reveal how much money you will offer to buy the home.
What is the home’s value?
This is the first thing you must know in order to know how much money to offer on the home you’re considering buying. To begin, what have nearby homes sold for in the last 3 months or perhaps even having to go out to 6 months ago? Such homes will determine the value of the home you want to buy. This is where you’ll value the hiring of a Buyer’s Real Estate Agent who will guide you with their expertise. A Buyer’s Agent represents you and not the Seller and they’re able to dig in to see the particulars of the homes that have sold in the recent past within close proximity to the home you’re considering buying. From these homes that have sold, how do they compare to the home you’re considering buying? You’ll compare their features, condition and location. From the comparable homes, your Agent will be able to determine a fair market value for the home you like. This is your starting point from which your offer will be considered. An ideal situation will be fulfilled when the Listing Agent for the home Seller knows how to price homes to sell and the value your Buyer’s Agent comes up with will be in line with the list price. Unfortunately, we aren’t always fortunate to stumble upon ideal home buying price circumstances and this will be another area where you will most certainly benefit from the use of a skilled Buyer’s Agent.
What does Seller’s Realtor reveal about the home?
Try to discover any desperation from Seller. If the Seller’s Agent is present at any of the home showings, your Realtor can cross examine to discover the reasons why the Seller is moving. His or her answer may reveal desperation. Desperation can mean savings to you. You really don’t want your Realtor to cross examine the Seller’s Agent, yet I wanted you to understand the value that can come from this when you hire an Agent to represent you who is talented at unearthing such valuable details.
A desperate Seller means that you could possibly consider an offer to them that is below what they’re asking or below fair market value. However, keep in mind that a Seller’s desperation is not the sole factor in determining an offering price as your very own desperation may also come into play as discussed below.