How do buyers decide on how much to offer for a home?
First, are you in a seller’s market or a buyer’s market? That’s an easy question to answer—we are certainly in a seller’s market right now. Most homes are selling for at least 100% of their asking price. That means, in today’s market, if you come in and offer 90% to 95% of the asking price, one of two things will probably happen: you’ll offend the seller, who was expecting a full price offer, or You’ll get beaten out by someone who did offer full price. If the market were to transition to more of a buyer’s market, then you would have some leeway in what you could offer.
“If you’re looking for a deal on a house right now, I’d first shop among the homes that have been listed for a while."
To get a deal in a seller’s market like this, I advise you to negotiate on things
other than the price. For example, say that someone wants $260,000 for
their home. You could offer them full price but negotiate on terms, like getting
the extra refrigerator they have in the garage in addition to the one in the kitchen.
You could also ask to move in a little sooner or make a deal to get
help with closing costs.
Also, consider how long the house has been on the market. If it’s only
been for sale for two or three days, you’re less likely to get a deal. If the
house has been on the market for two or three weeks, you might have a
better opportunity to offer a little less money for the home. Frankly, if you’re
looking for a deal on a house right now, I’d first shop among the homes that
have been listed for a while.
Finally, how does their asking price compare to other, similar homes in
the same neighborhood? Ask your buyer specialist to show you the data
on how those homes compare. Even if a home is new on the market, if it’s
overpriced, then you’ll have an issue with the appraisal
If you’d like information about working with a buyer specialist who can give
you tips on this topic and much more, or if you have any questions, please
give us a call or send an email. We can give you a checklist of things you
need to think about when you make an offer on a home. Hope to hear
from you soon!
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