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How Much Should I Offer on This Sweet Deal?

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Oh my, “it” just came on the market! The one you’ve been waiting a year for. And what a sweet sweet deal it is! It probably  needs work, because it’s 10K below everything else that has sold in the same area within the last year.  You look at the pictures – which don’t indicate a fixer-upper, but a house that has been lovingly maintained with more updates than you expected. Sounds too good to be true! Your agent tells you to move fast, get in to look, then make sure you have time to go right to the office to write up an offer if you like what you see.

But what to offer? At this point, having waited a year for this house, having watched the others go to settlement for 10K more than this – those that you didn’t see fast enough, took too long to think about or offered less than another buyer…. you are inclined, anxious even, to give them their asking price.

LISTEN TO YOUR AGENT!! If you don’t offer at least $5,050 over the asking price, someone else will get this one, too. Pricing it too low is a strategy. Price it low to sell it quick for the highest price possible. Price it too low in a neighborhood with a good track record, and that seller will obtain multiple offers and every offer will be over asking price.

Offer as high as possible with the sweetest terms you can manage!


Property Over Priced? How Much Should I Offer?

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It’s been on the market forever! They started $50K higher than their current asking price and it’s still about $20K over the competition. BUT you want it! You love the location. You love the yard! It has all the basic amenities on your wish list. If only the seller would be realistic with their price!

What should you offer? If you come in “insultingly” low, should you offer an explanation, send the seller comparables? Or should you just gush on and on about the house and how much you want it, as long as you can get it for a good price? LET YOUR AGENT GUIDE YOU!

Where most every transaction is basically the same, the personalities involved are varied. Your buyer’s agent will have an introductory and non-confrontational conversation with the seller’s agent in which they will ferret out the seller’s motivation and an explanation for the pricing. Chances are, the seller’s agent has already shown their seller the comparables – so we won’t insult the seller AND the agent by tacking these on to our low offer. And no need to gush – if you’ve taken the time to review and sign the 50 pages which make up an offer, to provide a pre-approval for your loan, you are already telling the seller you want the property, you’re serious.

In this situation, you put your best foot forward – make your low offer, but make the rest of the deal as sweet as possible, a deal the seller can’t refuse. For example, take it “As Is.”  [stay tuned for a blog on “As Is.”] Don’t obligate the seller to anything other than the price. If you need help with closing costs, you need help, just know that whatever amount you ask, reduces the sellers’ bottom line. Find out when the seller wants to settle, or where the seller wants to settle. In other words, your agent will relay to the seller’s agent that you are the most cooperative, easy-going buyer ever, and if the seller will only consider their offer price (please, please,) it’ll be smooth sailing to the settlement table.

The seller will counter your offer.  Unless desperate – which hasn’t been indicated by the pricing – the seller will take your offer and counter it, no matter what, to squeeze out of you every dollar possible. You can write in big bold red letters you’ve given the seller your best offer, your only offer, take it or leave it, and 99.9% of the time the seller will counter. Nothing to lose, everything to gain, right?

 Good luck in your negotiations!! 


How Much Should I Offer?

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You’ve finally found “the” one! It’s priced within your budget, it’s priced competitively. But an offer of “asking” price just goes against the grain, doesn’t it? Let your agent guide you and DO NOT be afraid or too stubborn to offer the asking price!  Don’t feel like you’re not getting the “best” deal available if you do so. Why?  Because the upfront negotiated sales price is, quite simply, step one.

If you are willing to pay what the seller is asking, then shouldn’t the seller be willing to accommodate you on the condition/inspection issues, appraisal issue, a conflict with the settlement date & time, help with a little closing costs?   At some point, there will be something you need, be it a personal request or a lender requirement, which will call for seller cooperation. By offering the asking price, you’re paying for cooperation up front.

Go ahead and offer less. The seller may take it! But be prepared for a battle when you want them to fix something found on the home inspection (their thoughts: buyer should use the discount to pay for problems!) Be prepared for a battle when you ask to change the settlement date by a day because you have an important work meeting you can’t miss!

The contract is step one. Then come the inspections, the loan and appraisal processing, the title work, the final walk through, then the actual settlement date. It is generally a 30-45 day process, a time the buyer and seller of a property are “involved.” Make it a pleasurable experience rather than a contentious one: Let Your Agent Guide You!

 

stay tuned for more “How Much Should I Offer” scenarios…..


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