Buyer's Query to Their Agent
April 21, 2009
How much off the asking price should I offer? The correct answer will probably be somewhat unsatisfactory to the buyer, "it depends".
O.K., so upon what does a perfect offer depend?
First, it will depend on the condition of the marketplace in which you are planning to buy. If there are many similar properties on the market and a glut of bank-owned properties listed at rock bottom prices, maybe a ridiculously low offer may be appropriate. However, you need to consider the location, the condition and bottom line, how much you really would like to make the subject property your home. So, it depends.
Ask your agent to provide a market analysis for you so you will know what other properties are selling for. Most data in the MLS will provide the original listing price as well as the final selling price. How close are those two numbers? You will then have a factual basis for the discounts that sellers are willing to accept. Markets are local and although the news media may say that prices have decline 30%-50% in California, California is a very large geographic area. In your community, prices may have declined far less.
I post median prices over the last five or six years, check them out. Ask yourself, is this a median house or is it better that half the houses being offered for sale?
I had a buyer rely heavily on price-per square foot. Unfortunately, the average price-per-square foot will not fit every property. As always has been the case, location and condition will make a difference. Uniqueness will, too.
If you are a wise buyer, you will have been pre approved by a reputable lender and you will know exactly what you can afford. Sure, you have looked at houses that are beyond your financial capability, but don't believe that the market is so bad that prices will be where you want them.
What should you offer? It depends!
How much off the asking price should I offer? The correct answer will probably be somewhat unsatisfactory to the buyer, "it depends".
O.K., so upon what does a perfect offer depend?
First, it will depend on the condition of the marketplace in which you are planning to buy. If there are many similar properties on the market and a glut of bank-owned properties listed at rock bottom prices, maybe a ridiculously low offer may be appropriate. However, you need to consider the location, the condition and bottom line, how much you really would like to make the subject property your home. So, it depends.
Ask your agent to provide a market analysis for you so you will know what other properties are selling for. Most data in the MLS will provide the original listing price as well as the final selling price. How close are those two numbers? You will then have a factual basis for the discounts that sellers are willing to accept. Markets are local and although the news media may say that prices have decline 30%-50% in California, California is a very large geographic area. In your community, prices may have declined far less.
I post median prices over the last five or six years, check them out. Ask yourself, is this a median house or is it better that half the houses being offered for sale?
I had a buyer rely heavily on price-per square foot. Unfortunately, the average price-per-square foot will not fit every property. As always has been the case, location and condition will make a difference. Uniqueness will, too.
If you are a wise buyer, you will have been pre approved by a reputable lender and you will know exactly what you can afford. Sure, you have looked at houses that are beyond your financial capability, but don't believe that the market is so bad that prices will be where you want them.
What should you offer? It depends!
posted by shirley harry at 7:53 PM
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