Home Buying in Sherwood>Question Details

Mckayla, Home Buyer in Sherwood, OR

My husband and I are trying to decide "How Much to Offer on a House"?

Asked by Mckayla, Sherwood, OR Sun Oct 21, 2012

Any advice would be appreciated...

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BEST ANSWER
Hey McKayla,

”How much do you think they’ll take?” is a question I get all the time. I wish I could pull out my crystal ball to see the sellers level of “mo” tivation.

Truth is, we have to do it the ol’ fashioned way- with good detective work!

Ask yourself, “If I write an offer tonight at X price and your Agent calls you in the morning and says someone beat you out with a higher offer, how bad would you feel?” If you’d be crushed, you should offer a bit higher. If you’d feel just fine and need to get it at your price, offer a bit lower.

Alot of times it depends on how bad you want the house, which often depends on the market your in. I always have my clients best interest in mind. I want to see them get the best deal possible. The market has been getting more competitve over the last couple years and it's not that difficult to see what kind of deal your getting with a purchase.

Compare Apples to Apples--

Compare “Apples to Apples” - Market Point of View

Everyone has comparison shopped for cars, apartments, etc. It’s the same with a home. Once you’ve seen 3 or 4 similar homes in a neighborhood, you get a good feel for what’s a good deal is and what’s not. When this question is brought up by one of my clients I pull up “sold” prices of similar homes for the most accurate comparison in the area.

Hope this helps and if you have anymore questions... Call me 503-857-6969

Have a great night!
1 vote Thank Flag Link Sun Oct 21, 2012
Mckayla, the very best place to start is by contacting a local Realtor that specializes in the area where the home is located and have interest in. It looks like you're in the Sherwood area where we (The Gardner Team) live and serve. We'd be happy to run a comparative market analysis on the neighborhood or area the property is located in and share our extensive experience to help you achieve the results you're after.

Sincerely,

Jason and Amber Gardner
971-832-1234
1 vote Thank Flag Link Wed Nov 7, 2012
Posting such a question on a aggregate real estate website suggests you are:
#1 not working with a real estate professional, or \
#2. you choose to disregard the guidance of the professional who has invested so much in your experience.
#3. Even worse, you have ignored the warnings of a myriad of agents who advise, DO NOT BUY A HOME THROUGH THE LISTING AGENT!"
-
Shanna, Maria, Anna and Rich have all provided you excellent guidance regarding the best path to take. Following is the path most failed purchase offer take. If you see your process in these FIVE (5) "SURE FIRE" steps, you really need to consult a professional.

What to offer. The common practice for 'lifetime free range' buyers is:
1. Get the dollar shown in county records that is preceded by some phrase containing 'value'.
2. Determine what the current owner paid for the home
3. Subtract from the #1 value everything that must be done to the subject property to turn it into a brand new home and call it a repair concession.
4. Get the Zillow SWAG (Scientific Wild A$$ Guess)
5. Offer 75% of #3 or #4 whichever is less, but not to exceed #2, plus 15%


Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
727.420.4041
http://RealEstateMadeEZ.us

First Look: http://youtu.be/PumYpkgybXE


.
1 vote Thank Flag Link Mon Oct 22, 2012
McKayla,

I would add to the answers below - BE PREPARED - make sure you are qualified to purchase the home you are interested in at the price level your broker recommends for making an offer. Lending requirements are getting tighter these days and I have seen many deals fail due to the buyer not being able to get a mortgage loan.

The inventory in Sherwood, and surrounding areas, has been shrinking lately so when a very desireable home comes on the market it is not uncommon to see them sell in a short period of time, and/or receive multiple offers, which puts you in a bidding competition.

Good luck with your purchase.

Kris Simpson
Principal Broker/Owner
Passages Realty
Tualatin OR
PassagesRealty.com
0 votes Thank Flag Link Mon Oct 22, 2012
Then you should have your agent complete a market analysis for you so that they can make sure you are in the ball park. This is no longer a buyers market- there are many places where there are multiple offers coming in and if you do not do your home work you may not get the home at all!
0 votes Thank Flag Link Mon Oct 22, 2012
What does your agent say?

What does the comps say?

How is your market behaving?

Only advise I can give you is to offer what you feel most comfortable paying for the home in question and have an appraisal contingency within your offer.
0 votes Thank Flag Link Mon Oct 22, 2012
Three things to keep in mind when deciding what to offer on a house are;

- Try to get a good price, but don’t get greedy.
- Consider what the home is worth to you and the market, ignore the asking price.
- Keep in mind, every transaction must benefit both sides of the transaction

You can read a whole blog post on the topic at the link below.
0 votes Thank Flag Link Mon Oct 22, 2012
Offer what you think the property is worth to you. The worst thing that could happen is that the owner says no.
0 votes Thank Flag Link Mon Oct 22, 2012
Hi Mckayla,

Have your Realtor do a Comparative Market Analysis (CMA) using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3 months. This will give you current market value and this is what you should base your offer on, not on list price.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Oct 22, 2012
Hello Mckayla:

First of all, you need to get comparative market analysis from your realtor to see how the property fares compared to other properties similar to the home you are interested in.

This will give you an idea if your offer will be way off or close to what other buyers were willing to pay for the other sold homes.

However, you have to consider some factors to weigh that Rich has already mentioned. Are you buying in a tight marker? If you do and you do like the house extremely, you may want to bid competitively. But not to the point of overpaying.

Your realtor should be able to guide and advise you in this regard.
0 votes Thank Flag Link Mon Oct 22, 2012
In order to determine a fair offer, review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there....
0 votes Thank Flag Link Mon Oct 22, 2012
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