How much should you offer on that house?

When you see the house that you want and are ready to make an offer, where do you start? 

A lot of buyers ask my opinion of  what is called the 90% rule- (90% of the asking price) Some buyers will make what the industry considers a lowball offer of less than 75% of asking price. Some buyers want the house so badly, that they'll pay asking price with no questions asked, and no matter what type of market

So what SHOULD you offer on a home? Well, that answer depends on a lot of things, but most people will come up with a offer based solely upon the asking price of the home, a nd some agents don't even offer buyer-client assistance with pricing, and they should.

When you purchase a home, your agent should conduct an in-depth market analysis of that home

to determine a reasonable price range in the current market. Let's suppose that you didn't have that market analysis from your Buyers Agent- and you offered 90% of the asking price of a home. Only problem is that the home was only worth 80% of what is was listed for. Now without you realizing it, because you did not have the information, you just started your offer too high! Okay, so now you know, why the 90% can cost you money, and in some instances, you'll still overpay for the house.

Maybe you want to put a "lowball offer" in on a house because you like to negotiate, and you want to see how much the seller will cut his price for you.  If your agent did not give you a market analysis of the home you want to buy, you  wouldn't know that this home is underpriced, and even an offer at asking price is a good deal. Rather than let someone else figure out what a good deal this house is, and losing the opportunity altogether  because you tried to overnegotiate, be smart about it, and put ina good offer tha the seller will accept before you get into a bidding war.

It's always up to you what offer to put in on a house, and you have every right to expect and demand that your agent will give you assistance in pricing. That's a fiduciary relationship, which is what your Buyer Representation agreement outlines quite clearly.

Let me put it to you this way- If you are selling a home, you would expect a detailed markte analysis. You should have a detailed market analysis of the home that you buy, too. If the idea of a market analysis for a home that you are buying sounds foreign to you, it's time for a new agent.

Comments

[Shower Doors]

With the advancement and the change in living styles of people, there has been a dramatic change in people’s preferences. With the increased choices, the demands have also increased. Building a home is one of an asset which you probably will build once in a lifetime, as the choices has changed people want to go for things that are in fashion whether they are regarding clothes, cars, furniture, home, shower doors etc.

[Frameless Shower Door]

Every beautiful house should have beautiful bathrooms. you can make your bathroom beautiful through installing amazing shower doors.
Frameless Shower Door