How Much Below The Asking Price Should We Offer On A House
How Much Below The Asking Price Should We Offer On A House
You’re getting ready to start the home buying process, browsing through all the real estate websites to see what’s out there and have started your new home wish list. You’ve probably been getting advice from friends and family members about how to get a good deal and things you should do to avoid overpaying. Now you’re wondering how much do you actually offer on a house? Is there some kind of magic formula to follow or do you just throw out a number that you’re comfortable with? Here are a few things to consider before determining how much to offer on a house:
Know the Market: Before even considering how much to offer on a home, it’s important that you’re familiar with the market you’re going to be looking in.
The market can vary between cities and price ranges so you’ll want to meet with your Real Estate Agent before jumping into the actual search process so you can learn about the current market of the cities you’ll be looking in.
The ability for you to submit an offer below the listing price will entirely depend on whether you’re in a buyer’s market or a seller’s market. Typically if you’re in a buyer’s market you’ll have more flexibility on price because the number of homes available is high and they tend to sit on the market for longer. The opposite is true if you’re in a seller’s market where inventory is low. This can lead to multiple buyers being interested in the same property, which would mean you wouldn’t want to lowball at all but instead offer at or maybe even above the list price. Again, it depends on the property.
Check the Number of Days on the Market: The second factor you’ll want to consider is how long the home has been active on the market to get an idea of the demand for the property. For example, if you want to write an offer on a house that has only been on the market for 2 days you probably won’t want to offer the seller way below the asking price if you hope for them to at least counter your offer. On the other hand, if the house has been sitting for sale for over a year, youll probably have some more flexibility to go in with an offer lower than the asking price.
Remember that even if a house has been sitting for an extended period of time, you’ll want to use market stats to back up your offer. This is something your Real Estate Agent can help you with. If you really want the offer to be taken seriously, you’ll want to avoid completely offending the sellers so make sure you’re not just blindly throwing numbers around.
Check the Comps: You also don’t want to overpay for the home so it’s important to look at neighborhood comps and see what other homes in the area have been selling for. Then compare the difference in features, square footage, updates, and any other major factors. The comps are what you can use to justify your offer price when you first submit an offer. This will back up why you’re offering the amount you’re offering instead of just appearing like you’re trying to get a deal.
Ask Yourself – On a Scale from 1-10, How Badly Do I Want This Home? The last thing you should determine is how badly do you want the house. Ask yourself – if your offer were to be rejected, will you regret not coming up in price or can you easily move on to the next house.
Try thinking about the home on a scale of 1-10. If you finally found everything you’re looking for, would it be worth losing for X amount? Decide what X is. If you lose it for more than what you’d regret losing, then it’s probably for the best!
There isn’t one answer on what you should offer on a home and there also isn’t a magic formula. You should work with a Real Estate Agent who you trust to guide you in the right direction and make the best decision for you.
Located in the 11 county metro, The Trust Team is a leader in the Minnesota real estate market. The Trust Team was founded in 1978, yet represents the best of traditional market knowledge, cutting edge technology and top -notch customer service - all provided by 10 of the most experienced agents in the industry.
We combine the very latest in proprietary internet marketing, and make use of the most current and relevant real estate and social media platforms. We are considered leaders and innovators - always willing to try what is new, and use what is proven. Joe Niece, has more than 3000 past real estate clients, and is an information and renowned internet Guru. His wife Angela Niece and partners, Nikki Moeller, Matt Wolfe, Mike Finstad, Joe Jones, Cory Kingbay, Mary Ellen McGlone, and Stieg Strand have created a most unusual real estate team. 2015 was our best year ever with 498 satisfied clients which gave us the honor of being the #2 team in all of Minnesota. We want your business, promise your complete satisfaction and we are committed to your success !
Jilly walks us through her amazing DIY project! She put together a bar
"I tried to sell last year and I was unsuccessful so I decided to get some new opinions on what I should do. I interviwed two agents when I was getting ready to sell my home the second time. Angela and the other top person in the area. I was very impressed with both and both she and Angela came up with similar values for our home. The problem was that Angela's value was with me doing three projects and the other Realtor told me that I did not have to do anything. My wife and I were leaning on going with the other Realtor and Angela asked if she could come over and go over a few things with us.
She pulled out the comparable homes that we had picked together when she first met with us and she asked us to look at the pictures. All of the things that Angela was telling us we should do were done on those homes.
She then asked us to think about the signs that we have seen in the area that were his and the signs that we have seen in the area that were hers. Then she asked us one really good question. she said "Do you want to list with the agent that has his signs go up, quickly have a sold sign and then the sign disappears or list with the agent that seems to have the signs up forever. It seemed really logical but we had never thought about it that way. I had always thought about how many signs I saw for the other agent. It made sense that the other agent was not doing more business than, it's that her signs stayed up much longer.
We were convinced to list with Angela but we told him that we thought that our home would be able to sell without doing the things that Angela had suggested. she told us she would market our home like it was the best thing on the market. A month later our home had not sold. she told us we could do the things that she had suggested or drop the price to match the value.
Being a stubborn German, I did two of the things that Angela suggested but not the third. Three weeks later, Angela was talking to me about feedback. she told me that we were going to hurt ourselves unless we decided on one path or the other. Either finish the last project or drop the price before we were stale on the market.
I finished the last project, we went back on the market and sold three showings later. I tell my friends that it was just luck but I know different. Everything that Angela told us she was going to do, she did. Everything that Angela told us was going to happen when we first met with him happened. The price we would get for our home if we did the projects she said we needed to do, we got (once we did the project) she told us the truth and I am grateful that we listed with him and I would suggest that anyone selling a home interview him.