Make an Intelligent and Informed Offer
Part of the problem of looking at homes for sale is you are not viewing homes that have sold. Only the sold homes will provide you with adequate comparable sales to know if a home is overpriced, underpriced or just right. Sellers can ask any amount they want, the price needs to be substantiated.
- Consider writing seller’s market offers in seller’s markets and buyer’s market offers in buyer’s markets. Cannot stress the importance of this enough. Your “lowball strategy” picked up from a popular TV show does not work in seller’s markets, for example.
- Select a home offer price based on the amount you feel a seller will accept or counter. This price is generally based on the comparable sales, with input from your real estate agent.
- If you are considering a lowball offer, ask your agent to verify this price for you. You will need to present a reason for the seller to accept this type of offer, and it can’t be based on whim.
- Prepare for multiple offers if the home is considered desirable in a hot location. Don’t shy away from multiple offers. Somebody has to win. Why can’t that buyer be you?
- If your offer is rejected, ask your agent to explain why and don’t repeat that mistake with your next offer. Also, don’t automatically blame your agent. Maybe the problem is you didn’t offer enough? If your agent steered you wrong, you need to engage in a frank discussion with that agent.