What to consider prior to making an offer
As a buyer you are aware an agent’s job is to get the best offer for their client. With this in mind you must be very well informed about the surrounding real estate market in relation to your purchase. The more prepared you are, the greater the chance of leverage in negotiation. The following are some key aspects that may give you an edge:
Has there been a reduction in asking price at any point during the advertised period?
When you are considering an offer, knowing whether there has been a reduction may hint at some underlying machinations. For instance if the price has been lowered already, the owner may be needing to sell quickly to finance another purchase.
What is the real reason for selling?
Try to work out the root cause of the sale. Is it due to upsizing, neighbourhood issues, job changes, marriage problems or maybe a combination of two or more? Working out the reason behind the sale can help you understand whether a buyer will be more likely to consider an offer, or will be holding out for the long run.
What has been the duration of the listing?
Finding out how long the home has been on the market will also guide you in your offer. If a home has been listed long-term, the owner may be stubborn and holding out for a certain price, even if the home isn’t worth it.
Is there a lot of competition? Are there any current offers on the home?
If you are competing with multiple buyers or investors, it can significantly reduce your bargaining power. As with any good or service, the price will rise according to the market. Ensure you do not get caught up in a bidding war; you may pay over the odds and regret it later.
How did the buyer / agent decide on the listing price?
Sometimes a buyer needs a certain sale price or a related purchase may fall through. If this is the case, an owner will likely never accept due to the logistics surrounding their next purchase. Knowing this will help you save time and resources with pointless offers.
As mentioned above an agents commission is earned through negotiating the best deal for their client which is also in the interest of the buyer. The key to making a good offer is to consider the aforementioned questions and to be well versed in the local market for your specific investment or residential property. The more knowledge you have the more power you will have at the negotiating table.
If you want to speak to an experienced professional agent contact Alert Property Group.