How Much to Offer

May 3, 2007

You've found a property that meets your needs and wants. You are ready to write up an offer. You ask your real estate agent "How much do you think the seller will take?" or "What should I offer?"

The flip answer to the first question is "The listing price." Real Estate agents , particularly if they are dual agents really cannot give a buyer a price that the buyer should offer. An agent can give the buyer the comparable sales and go over them with the buyer. Ultimately, however, the buyer must decide on an offering price.

What price a buyer will choose will depend on how badly the buyer would like that particular property. If a buyer is being relocated and must purchase a home and has found several that will do, the buyer is likely to write a lower offer than the buyer who falls in love with a home.

In my experience an off the wall low ball offer may be negotiated, but if it is too low, the seller will probably reject it. For a buyer to purchase at the best possible price, the review of comparable sales with a knowledgeable agent will answer the question of what to offer.