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.

HOME BUYER MYTH # 1 : It's a good idea to work with the Listing agent.

WHAT ??   If you are interested  in buying a house, AVOID having the listing agent represent you.

That may be the exact opposite of everything you may have ever heard about buying a home. Let me explain why. That agent is representing the seller, and besides having  a fiduciary relationship with that seller, there is an established  rapport with seller- there's an allegiance to that relationship. They know that seller better than they know you, so no matter what an agent says about being fair and equitable to both parties, I would think it would be psychologically difficult to attain a fair balance. Forget about Dual Agency representation- it's diminished representation.

So the moment you call the listing agent on that property, that agent knows you have interest. If you want to submit an offer on that property,, you'll probably end up paying more for it, because the agent already knows what the seller wants, and wants to look good to that seller by bringing in a great offer.

But someone told you that the agent might cut their commission to make the deal, and that way, you pay less.  The truth? Agents  cannot cut their commission without their Broker's approval. The Broker looks at things  strictly in dollars and cents. If the broker allows a commission break to help you purchase that house, then they do not benefit from a full commission on the seller side, or the buyer side. That home will sell- to someone who doesn't ask for a break on the commission, and you will end up buying another home through that agency with no commission break. So the broker loses twice in this instance if they cut the commission for you.  It's a rare occurrence when it does happen, so don't count your chickens on that one.

If you are interested in a house, DO NOT call the listing agent.  Interview Realtors and choose ONE real estate agent to  represent you. Someone that you can trust to get you the very best deal on your next home.   And  I just happen to know somebody.... 

Reading Between the Lines of an MLS Listing

Do you remember the first MLS listing your agent gave you? Was it somewhat confusing? There's a lot  of information on those data sheets. Realtors are accustomed to looking at them, but when you begin to look at houses, those MLS sheets look like a lot of gobbledy-gook. There are a few things to take note of right away, and you learn where that information is on the sheet pretty quickly, but there is also lots of information that almost seems hidden if you don't know what you are looking for, or should be looking at.

The first thing your eyes will be drawn to is the picture, of course. Then you'll see the price, and some particulars on the house, such as total number of rooms, how many bedrooms, and how many baths. Lesser known information that is on the MLS home sheet is the annual property taxes, property assessment, school information, and room features, besides the biggie, which is how long the home has been on the market. In our area, hidden in plain sight on the listing sheet  is  "MT 145", and unless your agent told you where it was, and what that meant, you probably wouldn't know. It means The Market Time on that house is 145 days.

Another very important thing to look at is the listing agent remarks. There are MANY subliminal messages here, and they ring true the vast majority of the time.

I'm going to ask you to look at the remarks on that listing in a different way. Think of yourself as an agent, and if you know that these remarks are  THAT important to help sell the house, it would behoove you to point our the finer features of the home in this section.

I don't care how lazy an agent might be, or how busy that agent might be, they still want to sell that house.  There are only so many alphabetic characters that an agent is allowed in this section, so its important that nothing is redundant. As a real estate agent, you would want to make sure that you have everything covered, right? Of course, you would.  So when you look at the remarks section of a listing, and there is redundancy, what should that indicate? There may not be any great things to say about that house, because the agent could't even fill up a small area of advertising space with anything other than what's already on the listing.  And another thing while we're on the remarks section- if all the MLS says is how great the neighborhood is,and nothing about the interior of the house, you can pretty much expect that the house may need some cosmetics.

Yes, I think you can tell I am passionate about my work.  I want the very best for my clients, whether they be buyers, or sellers.  Even the most seemingly minor details to someon else are very important to you when it comes to your  biggest investment. I'm always happy to share my knowledge, and help my clients  in the very best way that I know how. So when you're ready to buy or sell  real estate in Fairfield County, CT , I'm honored to help you, and eager to assist. :)

Real Estate lingo defined: Is "Street Phenomena" good or bad?

Street phenomena is when one home goes up for sale on a street, and then a few others pop up for sale almost immediately. What just happened?  It does raise a minor red flag, and it is important to find out why these homes are for sale.

There are three reasons for street phenomena.

Sheer coincidence, Some type of event in the neighborhood, or Seller ego.

• Sheer coincidence- It does happen, and when this is the case, there are no worries. Some areas are more transient than others for a variety of reasons.

• Some type of event in the neighborhood- It could be that the school boundaries have  been redistricted, for example. Or yes, it is a possibility that some homeowners got spooked by an event. You'll want to find out what, if that is the case.

• Seller ego-  This is by far, the most common. Here's what happens. Joe and Jen list their home down the street with a Realtor. Bob and Betty see the real estate for sale sign go up, and inquire as to how much Joe and Jen are asking for their home. Bob and Betty think to themselves, if Joe and Jen can get THAT price for their home, we can certainly get THIS price for our home. Let's sell our house, too.Then Kurt and Kathy find out what prices those homes are listed at and join the fray. Don't fall victim to that trap.

If you are selling your home and experiencing street phenomena, it is imperative that price your home correctly. If you are a buyer, and are interested in a home located on a road  that is experencing street phenomena, it's important to find out why, and in what order the homes went on the market. It does make a difference. I  delve for details for my clients, so no worries!

So, all in all, street phenomena is nothing to get overly concerned about. Just find out the details!


If the Federal Reserve thinks this is important, then you should too!

Did you know that the Federal Reserve banks submit a report every 45 days on current economic conditions? It’s called The Beige Book”.  I have my own real estate version of “The Beige Book”, and I call mine the “The RealTrender Report”. It’s a 45 day listing and sale summary of homes, sorted by price and bedrooms. Sounds complicated? Not really. It’s a great market gauge. I’ve supplied a  graph to give you a visual, rather than text description.

When it comes to pricing homes in any real estate market, your Realtor needs to be right on top of the latest data available, and should be able to trend at least the very near future. When you are ready to buy or sell, trust your biggest investment with an agent who cares enough  to go the extra mile to get everything right. (That would be me!) Visit our Real Estate Blogs on Easton, Fairfield, Norwalk, Trumbull and Westport  to see your local "Real Estate Report". As always, if you have any questions, call me, text me, or just set up an appointment.