Everybody wants a deal…
The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CRSA, CSP, GRI, ePRO ®, REALTOR ®, RealtySouth
The opinions expressed here are my own and don’t necessarily represent those of HomeServices South.
Everybody wants a deal…
Advice for Buyers: In this Buyers’ Market everybody is looking for a deal… It makes no difference what neighborhood or price range… everybody wants a deal!
So here’s the deal: Homes will always sell at market value. Market value is determined by what a buyer is willing to pay.
You… the buyer… are the market.
As previously stated here, the value of a home has nothing to do with what the owner paid for it, has invested in it, needs for it or any of those other common justifications made for why they are convinced that it will sell for more than market value.
Market value varies based on the buyer population and desires. It is not a fixed, rigid price, but instead is a range of value. This is because no two buyers are alike. While one must have a pool, another will consider a pool a liability. What one buyer loves turns the next buyer off.
“Low-ball” offers are becoming the norm of the day. The term low-ball is generally defined as the deliberate underestimation of cost or value… or in other terms an offer significantly below the seller’s asking price. However, low-ball offers are not always the best path to getting a great deal.
Negotiating the offer…
Unless your goal is to accumulate a stack of rejected offers you will one day share with your grand-children, it is important to remember that you are offering to purchase a home. A home, unlike a bushel of corn, a pound of beef, or a ton of sand, is inherently emotional.
So, it is helpful to keep in mind a few dos and don’ts when creating and presenting your offer:
Do know the seller’s circumstances. Obviously, knowing the seller’s circumstances will not always be possible. However, it doesn’t hurt to ask about those circumstances before considering your offer. It’s truly surprising what you (or your agent) can learn by simply asking a few questions. Does the seller simply “want” to move or do they “need” to move? Is there a real driving motivation, or is he just thinking of moving to the beach if he can get “his” price? Circumstances will dictate whether there is a bargain on the horizon, and knowing this in advance can save everyone time and frustration.
Do get personal. Presentation of the offer can be a key to successful negotiation. Putting a personal face on the offer can make a seller consider your offer in a totally different light. For that reason, I suggest writing a cover letter to be submitted with your offer (or even better presented by your agent) that tells the seller why you believe this is the right home for you.
I have seen sellers accept a lower offer because they felt a connection with the buyer. Does the seller have a cat? It might not hurt to mention that your own Angel will just love this new home, as well. The seller raised his children in the home? Why not mention how much your children will enjoy having their own space? It may not help, but it can’t hurt.
Page 1 of 2 | Next page
