Trends, Testimonials, War Stories & Other Real Estate Related Adventures

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!! 

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