Hi Mike -Christopher did a good job explaining all the elements that go into an offer. We just told first time home buyers last night that in this market if your offer is 10% lower than asking, there is a good chance you should at least get a response. That is, if the house is priced right. You should be working with a Buyer Agent - (Certified or Accredited - it's the same instructo) - who can pull comparables & history and suggest a 'reasonable' starting point. Wayne was a Purchasing Director for 30 Years and Knows how to negotiate! If you are not working with anyone - let us know, we live in the area and would love to help. Don't wait too long, you have to close by November 30, 2009 to take advantage of the $8000 Tax Credit.
Noreen & Wayne, Associate Brokers
Better Homes & Gardens Rand Realty
914-406-5291

Oh, if it was only this easy!

Some buyers price their house right, and they get offers at listing price that day. Some overprice by 30% and they sit and sit and sit.

There is no rule, you have to do your homework and due diligence.

-Cathy

I think Christopher said it all and this is why its important to work with an Accredited Buyer's Agent as they will do the research, put together a CMA and get you all the information you need to make an informed decision prior to presenting the offer.

Hi, I wrote a blog post on presenting an offer that I feel will help you.

Once you and your Buyer Client have found the right property, the next step is to craft an offer that will hopefully lead to an accepted offer. There are many factors that go into a purchase offer and the Buyer Client is the ultimate decision maker.

These factors are as follows:

1) Price of similiar properties, normally the Agent will put together a CMA (Comparative Market Analysis) that will accompnay the offer. This way the Seller and Listing Agent see that You have done your homework and understand what comps We used to make Our decision.

2) Property Condition - Is the property in good condition or in need of updates and repairs. Will the buyer have to invest alot of money for the repairs?

3) Length Of Time On The Market - A long period of time on the market may indicate a slow market, there is something inherently wrong with the property, or the property is over priced. Over pricing is usually the number one reason a property will sit.

4) Supply And Demand - The Buyers offer may compete with others. This happens alot in a Sellers market, but as We have seen in Our market lately multiple offers will come if the property is desirable and attractively priced.

5) Sellers Motivation - A Seller that is under duress or pressure to sell may be more receptive than one that wants to wait for the right buyer and price.

6) Terms - This is a very important part of the offer. The terms can make a world of difference, sometimes even more then the dollar amount of the offer. Again, this all goes back to the Sellers motivation. Some terms that make an offer more attractive are all cash, short closing period, no home sale contingency for the buyer, waiving contingencies such as a home inpsection or mortgage (I recommend these stay in), and few or nor Sellers concessions. The simpler the terms the more enticing the offer will be.

There isn't really a set amount or scale for what to offer. Try to apply the above elements coupled with how much you want the property.

Sincerelt,

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
Legends Realty Group
914.406.9023