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Ed Hodkinson, Real Estate Pro in 11714

Well this weekend I'm taking my 1st client to see a house. They really like the house and Im hoping that they want to make an offer on it as I

Asked by Ed Hodkinson, 11714 Fri Jan 21, 2011

think it is just the one they are looking for. So again this is the 1st time I'm going into a house to take a look as a new realtor.

My question here comes out of real estate 101. If they like the house enough to make an offer, what would be some of the things I can do to make a sound recommendation on price? I'm thinking get the comps from the area and look at those. That would be my first stop. Do any of you out there in the rain have any other techniques that you use?

Ed

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You can always 'recommend' what you think they should offer, but in the end the decision of what to offer is their decision.

Don't be afraid of asking them what they think the property is worth. They may well be wrong, but at least you will know how in their own minds they value the property.

Will you find the 'right' house this weekend? Possibly. For me, the 1st batch of homes helps me to dissect wants and needs of the buyer. They might 'want' a big back yard, but 'need' a big kitchen. Right now I'm working with a new buyer and after looking at maybe 5 houses, I have a very sharp snapshot of what they want. I just need to find the perfect home.

And remember, always ask questions and ask them upfront or you will be spinning your wheels through dozens of homes. A sales trainer once taught me to ask 6 leading questions right off the bat. This helps you to manage their expectations, wants, desires while also keeping YOU in control of the sale. And you will end up with happy customers who aren't second guessing their decision.
1 vote Thank Flag Link Fri Jan 21, 2011
You did say "client" so I will assume you entered into a buyer broker agreement with the buyer. Do come prepared and show comps to negotiate the best price for your buyer.
If the buyer is a customer, you represent the seller and should be acting in the best interest of the seller.
Good luck!


Century 21 American Homes
516-297-3146
0 votes Thank Flag Link Sat Jan 22, 2011
All the best to you....if unsure of any possibile techniques, the best person to answer your question is your broker owner and or office manager--consider asking either party all your questions beforehand and thereafter....
0 votes Thank Flag Link Sat Jan 22, 2011
Ed,

We provide a CMAto the buyer that is very similar to what we provide to the seller at the listing.

It really impresses the customer because it shows in writing that their interests are very important to you.

Our CMA also shows recent pendings, sold and an ocassional Active along with market stats. like time on market and average selling price.

They love it!

Just like they will love working with you!
0 votes Thank Flag Link Sat Jan 22, 2011
Ed,

Great question! An experienced agent will know when it's time to have assess to the comps necessary to support a reasonable offer. It sounds like this make the time for you, so to be on the safe side invest a few minutes on your MLS to identify the recently sold similar properties...

As a good Boy Scout or real estate agent, it never hurts to "Be Prepared."

Good luck,

Bill
0 votes Thank Flag Link Sat Jan 22, 2011
Ed I would sujest that you have your broker ready to answer his phone. You or your clients may have questions that you do not have an answer for.
By the way don't set your hopes to high on the first home they see being the one that they want to make an offer on. I think that happen once in 9 years for me.
0 votes Thank Flag Link Sat Jan 22, 2011
First off, good luck this weekend!

The best thing you can do is preview,preview,preview the properties in your area. Especially when you are new to the game, you need to learn your inventory. Yes inventory changes weekly, but after a while, you will know what homes are like in the different areas of your city, what the various conditions of the properties are,and what typical asking prices are for those home. Don't be surprised if the home you think is perfect for them isn't what they end up buying. All to often a buyer will give you a list of "must haves" , only to fall in love with a home that doesn't have any of those qualities.
0 votes Thank Flag Link Fri Jan 21, 2011
It depends on what your relationship is with the buyer. If you are working as a seller's agent then you should be encouraging full price or a reasonable offer commensurate with market value. A market analysis prepared for a customer could be construed as undermining the seller. However if the buyer is your client and you are working as a buyer's agent, then you should be doing a market analysis for your client to come up with the best price for him/her or whatever it takes to secure the house. Sometimes that means offering full price or more in a muliple offer situation.
In a nutshell, if the buyer is your client be sure to be working in the best interest of the buyer. If the buyer is your customer, you should be working in the best interest of the seller.
0 votes Thank Flag Link Fri Jan 21, 2011
Comps are key. See what percentage of asking price they sold for and come up with an offer based on that. But if your buyers are asking for seller concessions (like closing costs), then you may want to bump up the purchase price a little to compensate for that. Good luck!
0 votes Thank Flag Link Fri Jan 21, 2011
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