The short answer: If the asking price is much lower than market value, no. If it’s near market or above, generally yes.
Too often buyers want to offer less than asking regardless of the price and wind up losing the property to a higher bidder, often due to inadequate information and guidance. When you hire an agent, make sure you have a good agent from the outset. A Buyer’s agent can not only help you navigate through the myriad of issues involved in the home purchase, he/she can also help you determine the actual market value of the property in question, sometimes find out information you can leverage, and help you write the winning offer without overpaying. This also includes a sanity check on emotions when competing with another buyer, again to avoid overpaying and to know when to walk away and look for another home
Here’s the best part: In most cases, having a Buyer’s Agent represent you is paid by the seller. Why write your offer with the listing agent? The listing agent is the agent of the seller and first has a fiduciary responsibility to the seller.
There is a definite skill to selecting an initial offering price. The object of course is to be the winning buyer while still getting a below market price.
Before we show a property or write an offer for a client, we make sure that the house is first and foremost a good match for our client. This is accomplished largely in an initial consultation of needs & desires. We want to make sure that all factors have been carefully considered: schools, neighborhood, floor plan, safety issues, noise issues, traffic, construction, etc.
Once we agree that we’ve found a candidate home, here’s the general process we go through when we’re suggesting an offering price:
1. Prepare a comparative market analysis to determine fair market value of the home.
2. Drill down on the condition of the subject home and the condition of the comparables. We certainly don’t want to be comparing a fixer-upper with a remodeled home.
3. Examine how long the property has been on the market and if there have been any price changes.
4. Speak with the listing agent to see what other offers may be currently in on the property and what the offer history has been. Probe for what else the listing agent may be willing to share that could help our offer.
5. Prepare an offer with terms that are favorable to you, while still attractive to the seller.
Once we have determined a price, we then determine a strategy on where to position the offer based on the asking price and your desire to own this home. Some homes you will be fine missing out on and occasionally, a one of a kind home comes along that requires more serious consideration.
To get the right home without over paying, start by having the right team working for you. Call us to discuss how we can best help you at 775-432-6300