Tigard
Oregon Real Estate and
more: How
much should I offer on this property?
This
is a question I
get
asked from almost every first time home buyer and even
some experienced
buyers.
But, the question I ask in reply is, “How much do you want the home?”
It is a matter of risk vs how long the home has been on the market.
You
see, when you are looking
for a home and you see the listing price, that is the
price the home
owner would
like to get without having to pay any closing costs for the buyer or to
do any
repairs, but they usually are expecting those things.
But, when a home just
comes on the market and you ask this question,
then be
prepared not to get the home. You see, if a home is a
good deal already
and is
in good condition, then they will more than likely get a full price
offer
within 24-72 hours and aren’t going to accept less than asking price.
I have seen many buyers lose their dream home because they saw the listing price as a starting point, even on the first day on the market, and then they are shocked when someone outbids them. One thing I have found is the day you find a home that you really want, there is usually someone else who has been looking longer and has already discovered that if they want the home they had better not play around on price too much.
I have no problem with buyers negotiating a slightly lower price for themselves, but asking for $35,000 less than asking price on day one can be a sure way to not get the home you want. My best suggestion is negotiate for repairs and upgrades that come up on the inspection rather than negotiate the price immediately.
If you own a $40,000 car and want to sell it used, would you accept $30,000 for it? More than likely not, so why would a home seller? Now, with short sales, there is a little different mind set with most buyers. They see the bank as the one taking the loss, so they feel they can offer lower than asking price by any amount they want. But, take in to consideration that the price usually already reflects the reduction in price because it is a short sale.
Do your homework. Don’t offer more than the home is worth, but also don’t offer your way right out of your dream home. I would love to help you buy your dream home today, so give me a call or drop me an e-mail.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - Tigard Oregon Real Estate and more: How much should I offer on this property?
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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Todd, You are SPOT-ON with this post! Funny but, recently I have had two buyers who have insisted on making incredibly low-ball offers, not considering your 'facts,' nor the actual market value that I've presented to them. They have both lost two offers to higher bidders and those homes have closed. When I sent the data to them to show what the homes sold for (all at least 97% of list price), they are now ready to 'get real' and make legitimate offers. Real estate IS local and I think that oftentimes the buyers moving from other areas do not fully understand this.
GREAT post, as usual!
Yep I was asked this today and I said bring your highest and best. We don't have the time to waste on the back and forth to come out where we were going to end up in the first place.
Hi Todd..You make some great points here, Great Post :O)
Todd, you are right! It all boils down to how badly the buyer wants the home.
Hey Todd: good stuff!
Todd,
Reading this post sound like you were in the conference room with me recently, when I was with a first time homebuyer.
All excellent points. I can make recommendations for my buyer clients, I can't make the decisions.
Rich
Todd - This is another great example of why a home buyer needs an experienced Real Estate Agent to lead them.
I agree totally. As a mortgage broker, I don't get asked as often, but when I do, I give the same answer that you do. The market is created by what people are willing to spend.
When I bought my house I thought it was a bargain. Prices have shot way up since then and gone back down again, but I am secure knowing I paid what I believed was a more-than-fair price.
Good post, Todd. I find it frustrating in the market, even when you price a property TO SELL, or below the comparables, buyers think they can come in at a certain percentage lower and the seller will jump at it. Not true.
Good advice today for sure Todd.
I agree with Erica's comment above, the seller isn't necessarily going to jump at a low offer so make it a reasonable if it's the house you want.
Patricia
Todd --- Congrats on yet another feature --- You have made some very good points here --- I think the car analogy is very good.
Mama Liz
Great post. I had buyers lose a home yesterday that has only been on the market 14 days. Someone else beat them to the punch and I'm sure at a higher price.
Hi Todd. There are so many factors but if a buyer wants it badly then yes definitely do one's homework. I have seen far too many buyers think they can submit low ball offers only to have lost by a few thousand to a higher offer. ~ Lana
Todd - The price to offer on a home is a complex issue. It depends not only on how long the home has been on the market, but what condition the home is in, how the home is priced, and what kind of market we are in. There is not just one answer to this, as each home is unique in it's pricing (listed too high or too low), and condition (excellent, or fixer upper). You can't really say offering $35,000 less is good or bad unless you look at that specific home and the market conditions.
Thank you everyone for stopping by, I agree with some of you that each property is different, but the fact still remains that if you want your offer accepted, you better present something the owner will take!