There is a home for sale in the area for about 260k...... if I wanted to make an offer what would be a good one? We dont want to miss out.

Asked by crisd21, New York, NY Sat Sep 8, 2012

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Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Sat Sep 8, 2012
Good afternoon Crisd21,

This IS indeed a Buyer's Market. But it's difficult deciding what is a good offer to make when you find a house you like.

Before you make offers, you have to know your maximum financing amount/purchase price.


First things first: when making an offer, focus on what your monthly payment will be for the mortgage financing, including taxes and insurance. If that payment is within your means, then your Mortgage Banker will determine the maximum loan/purchase price for you based on all the factors of the monthly payment, your down payment and your mortgage qualifications.


Begin making an offer with the following standards:

1. WISH LIST. Does the home meet MOST of the requirements from your Dream-Home-Wish-List? The Dream Home exists only in our minds; it's NOT out there waiting for you to stumble across it one Saturday afternoon. But you can find the right home using your Wish List. When you find the home that meets most of your requirements from the wish list, then it's time to make an offer.

2. FORGET LIST PRICE. Based on your own research, shopping in your chosen area, select the price you're most comfortable with, regardless of list price/asking price. In other words, you'll find a home listed at $268,000, but you've seen at least a dozen other similarly constructed homes in the immediate area priced or sold at $235,000. What makes this home so special that it's priced $33,000 more than the average price? Remember, your Lender will appraise the home based on similar homes and those prices.

3. MAXIMUM OFFER. Never exceed the price based on your mortgage qualifications, no matter how much you LOVE the home. You have to be able to afford the payment for the next thirty years. That in-ground swimming pool you love isn't going to pay the mortgage for you!

4. OFFERS ARE NOT PERSONAL. An offering price can NEVER be misconstrued as an insult to the homeowner. This is business; you're not going to hurt anyone's feelings! Make the offer based on a price you're most comfortable with!


5. OPENING OFFER. NEVER open with your maximum offering price. Test the waters with your opening bid: you want to see if this Seller is a SERIOUS Seller who understands this is a BUYER'S MARKET. If there's no reaction to your offer---assuming the price you offered is within the reasonable range of current market prices---you may be wasting your time with this home/Seller. It might be time to move on to another home.

See my "Five Steps To Making An Offer" for the best way to negotiate on your home purchase.
http://www.tcurranmortgage.com/2010/04/09/five-steps-to-maki…

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
.
1 vote
Christopher…, Agent, Tarrytown, NY
Sat Sep 8, 2012
Your offer should be what you feel the property is worth compared to others you've seen and recent sold comps.

Chris
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sat Sep 8, 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.
1 vote
Jim Olive, Agent, Key West, FL
Sat Sep 8, 2012
As most of the other responses suggest, a CMA is a key part of determining an appropriate offer. It is NOT, however, the be-all, end-all. The most important factor is how YOU feel about the house. How much is it worth to YOU? If you LOVE the house and would absolutely DIE if you did not get it, then it would be in your best interest to look at the CMA-suggested-price and the list price and make your offer VERY STRONG in comparison. That way, you reduce the risk of someone else getting the house or the seller dismissing your offer. Remember, the seller and his/her agent feel the list price is fair, or they would not likely have started there, so a much lower offer could insult them. This is the psychology of real estate, and it's a big part. Since you say "We don't want to miss out", it suggests you really want the place, so you would likely want to make a strong, competitive offer. If you don't LOVE the place, but would be ok with it at a really low price, and you're willing to see it go to someone else, consider making a much lower offer, with your eyes wide open to the risks associated with that action. Try to consider how you'll feel when the dust settles, after the house is sold...would you be happy it's yours and feel good about what you paid? Would you be disappointed that you paid too much? These are things YOU have to decide, nobody else can make these decisions for you. Your agent can help, but YOU are the ultimate owner, so it has to be right for YOU. Best of luck buying a new home.,,
0 votes
De Vonte Wil…, Agent, East Point, GA
Sat Sep 8, 2012
This is a very common question. First and foremost, I commend you for your interest in purchasing a new home. It is a great time to buy--home prices are still moderately low, interest rates are still historically low--3.25% this past week for a 30 year fixed FHA.

However, the most important part in your offer is making sure that you are pre-approved. If you have not already gotten a mortgage pre-approval, consider contacting a mortgage advisor. I can get you in contact with one if you'd like. A mortgage pre-approval is crucial when making an offer. It let's you know that you can afford the home you are looking at, and the seller will take your offer more seriously.

As for making an offer. Where is a good place to start is your question. Consider working with an Agent who can help you decide and examine what other homes in the area are going for. A detailed analysis on similar homes can help you decide where a good place to start is, and where you should eventually end up. Remember--everything is negotiable.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.

Wishing you the best of luck,

De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
Direct:(631)638-6193
Mobile: (631)384-3695
cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
"I Stand Behind Getting You Results!
0 votes
Arlynn B. Pa…, Agent, Roslyn Heights, NY
Sat Sep 8, 2012
Your offer should be one that is comparable to the other homes that have sold in the area. If you do not know the comparable sales or are not already working with a Buyer Broker who does have that information (that is the person who would work for YOU), your best bet would be to hire a Buyer Broker who will get comparables for you and negotiate on YOUR behalf. He or she will be able to compare homes that have sold in the area, give you the best idea of a good offering price to make and negotiate for you to make sure that you don't miss out on this transaction.

Buyer Brokers will be certified with CBR or ABR after their names so that you are aware that they have the knowledge necessary to act in such capacities.

If you have any further questions or would like some help with this matter, please contact me.\

Regards,
Arlynn

Arlynn B. Palmer, ESQ, CBR, SRES, CMS, CNS
Associate Broker
Daniel Gale Sotheby's International Realty
Cell: (516)410-3594
Email: Arlynn@ArlynnPalmer.com
Website: http://www.ArlynnPalmer.com
0 votes
Shanna Rogers, Agent, Murrieta, CA
Sat Sep 8, 2012
Hi crisd21,

If you're not working with a Realtor, hire one (the seller usually pays all commission so it won't cost you anything). 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. 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
Nina Harris, Agent, Williston Park, NY
Sat Sep 8, 2012
Work with a buyer broker who would be able to pull recent sales and advise you accordingly.
0 votes
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