Home Buying in 28602>Question Details

Freetopraise…, Home Buyer in Hickory, NC

how do you know what is too low of an offer?

Asked by Freetopraise10, Hickory, NC Thu Feb 16, 2012

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That is determined by the sellers and their agent upon receiving the offer. Generally you should make an offer based on the comparable sales and the condition of the home.

Regards,
Marco Gomez
NY State Licensed Associate Broker
Keller Williams Landmark II
917-734-2012
marco.gomez@gmail.com
0 votes Thank Flag Link Fri Feb 17, 2012
Another option is to put yourself in the seller's shoes. If you received the offer you're considering making, how would you react?
0 votes Thank Flag Link Fri Feb 17, 2012
Your agent should be prepared to give you a CMA, that gauges the maket in your area. With the CMA you will armed knowing what is for sale, what is pending and most important, what has sold in your area and how much the properties sold for. Now, you should be well prepared to know when an offer comes in low. You are ready to negotiate the sale price. Most home buyers are submitting a low offer at the beginning of negations. In today’s market conditions, no agent should be too quick to dismiss any offer to purchase from a qualified buyer. All offers are negotiable!
0 votes Thank Flag Link Fri Feb 17, 2012
The simple answer is when you don't even get a response from the seller. If you at least get a rejection, then you're still in the ball-park. A good agent will help you gauge what results you might expect with your offer.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Feb 17, 2012
Depending on your current market, its not always a matter of how much less will the seller accept, but how much is the other buyer'soffer or offers. Today we see foreclosed homes in need of repairs, short sale homes that tend to take extended time to close, then you find that needle in the haystack. Its the one you've been looking for. Chances are, if you saw it and liked it, so did somebody else. If you have a 2nd choice home you can go after, then take a chance and go low. But if there is no 2nd choice and your going to the lose THE home, I'd go in stronger. Your REALTOR will be able to advise you on the current market. Ask them how long homes are staying on the market before selling compared to the one you're looking at. Ask him to run a comparative market analysis to see if its priced at market value. These tools will help you make that informed decision.
0 votes Thank Flag Link Fri Feb 17, 2012
Hello Freetopraise,

This is a tricky question to answer. I would ask you how bad do you want the house? Meaning, if you give such a low offer that the sellers don't respond or no longer want to negotiate are you going to regret the offer? Your goal is to get the home for as low as possible and your goal is to keep communication open between both parties. So you need to devise a strategy and at times I put myself in the seller's shoes. I imagine if this was my home and I had this offer come in, how would I react? If I would be insulted, chances are they will be insulted. Truth is that you need to have an agent give you the market value of the home and decide what your willing to pay based on that value. Then make an offer that will get you at or below your comfort level. If your just looking to steal a home just make sure you don't mind if you never hear back from the seller. Remember, you may need to open negotiations after you have an accepted offer, so you want to keep the sellers on your good side.

Good Luck,
Brent
0 votes Thank Flag Link Thu Feb 16, 2012
Freetopraise,
If it's turned down. Each situation is different. Some seller's overprice their home and a fair market offer may seem too low to them. Others are priced fairly, but accept a low offer just to be done showing and move on. A good agent working on your behalf will have a good sense of your local market and the specific house you have in mind is worth. There are no reliable rules of thumb. Each seller and each agent have their own theories of how to market and sell a home.
If you haven't already got a great agent working for you, find one. We earn our commissions in situations just like this.
0 votes Thank Flag Link Thu Feb 16, 2012
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