â€How much do you think theyâ€™ll take?â€ is a question I get all the time. I wish I could pull out my crystal ball to see the sellers level of â€œmoâ€ tivation.
Truth is, we have to do it the olâ€™ fashioned way- with good detective work!
Ask yourself, â€œIf 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?â€ If youâ€™d be crushed, you should offer a bit higher. If youâ€™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 â€œApples to Applesâ€ - Market Point of View
Everyone has comparison shopped for cars, apartments, etc. Itâ€™s the same with a home. Once youâ€™ve seen 3 or 4 similar homes in a neighborhood, you get a good feel for whatâ€™s a good deal is and whatâ€™s not. When this question is brought up by one of my clients I pull up â€œsoldâ€ 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!
Jason and Amber Gardner
#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
First Look: http://youtu.be/PumYpkgybXE
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.
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.
- Try to get a good price, but donâ€™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.
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.
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.