How does one determine the initial offer?

Asked by Trulia Brooklyn, Brooklyn, NY Tue Mar 12, 2013

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Javier Meneses’ answer
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Tue Mar 12, 2013
Initial offers should be within the range of what the buyer is willing to pay for the subject property. The buyer, with the Realtor's help, should try to determine the estimated value based on recent closing comparables, property condition, location, etc.

By knowing what the value is, a buyer can then determine what he/she is willing to pay. Determine a range, for example $325.000 to $335,000, and obviously you can start your initial offer at $325k, knowing that if you have to negotiate you're not willing to go passed $335k. Just my idea.

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Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648
1 vote
Rhonda Holt, Agent, New York, NY
Tue Mar 12, 2013
Hello, there are many ways to determine the initial offer. Take a look at some of the ways below:

- How much have similar homes sold for in the last six months?
-What is the asking price of homes in the area right now?
-What is the condition of the home you want to buy compared to similar ones on the market?
-How bad does the seller's really want to sell?
-How long has the property been on the market?
-How much do you qualify for and how much can you afford to pay?

Above are all the questions you can ask your Realtor to gather for you in order for you to come to a conclusion.
0 votes
Luke Constan…, Agent, Brooklyn, NY
Tue Mar 12, 2013
Determining the initial offer can be a little tricky. A buyer want to get a property at the lowest price, but doesn't want to be denied the opportunity of getting a counter offer. This is where a buyer's Realtor comes into play (At no cost to the buyer... Of course)

A buyer's Realtor will question the seller's Realtor, feel him out and try to get a good initial bid to start from that will still be low, but also enough for a counter offer. There are many tricks to the trade in this case, I will not reveal.

Answer: Get a good buyer's Realtor. (Like Me)

Luke Constantino
(212) 300-3919
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Tue Mar 12, 2013
The amount a buyer offers on a property should be based on how badly the buyer actually wants the property. In the end, the only thing we know for sure is that if you offer the full asking price, most likely you will get the property. If you offer less than the asking price, anything can happen... but the bottom line is that the closer you are to the asking price, the more is the likely that you will get the property.

Think about how badly you want the property and then offer accordingly.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes
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