Determining Your Offer Price

By
Real Estate Agent with Firefly Realty, Inc

So you have found the perfect home for your clients and you already know the seller's asking price? What price are your clients going to offer and what is the best way to determine that figure?

First, look at recent sales of similar properties to determine an offer range.

Comparable sales, meaning the recent sales of similar homes that compare closely to the one you are looking at, are very helpful. Accessing information on comparable sales can be easily accessed by the real estate agent. It is more difficult for the general public to obtain this information. Two of the most obvious sources are public tax records and the Multiple Listing Service.

 Take a look at the condition of the home, improvements, current market conditions in the area and the circumstances surrounding the sale of the home. This will help you detemine a "fair" price for the home. Depending upon your negotiating style and the circumstances of the sale, adjust your "fair" price accordingly to determine the initial offer price.

If you are submitting an offer that is lower than asking price, you can send your list of comparable sales and any additional information to the listing agent to help justify the offer price to the seller.

 

Posted by

 

Karyn Smith Woody

Cozy Cove Realty (GA) & Firefly Realty, Inc (NC)

866-275-2468 office      706-897-0956 cell

karynsmithinc@gmail.com      www.CozyCoveRealty.com   www.FireflyRealtyInc.com

 

Licensed in Georgia & North Carolina

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Rainer
12,563
Kayla Pearce
First Class Properties - Milford, DE
Real Estate Agent - Milford Delaware

Nice post Karyn. Since I am a secretary for Realtors, as well as a Realtor for myself, I really think that sending comparables is a good idea! Sometimes sellers don't understand why they are getting lower offers, and sending those can help! Good idea!

Jan 19, 2009 01:39 PM #1
Rainmaker
98,091
Karyn Smith Woody
Firefly Realty, Inc - Hayesville, NC

Kayla, Thanks for your comments!

Jan 19, 2009 02:21 PM #2
Rainer
26,047
Gary Ward
Advantage Chatuge - Hayesville, NC

Kayla, Yes that can be helpful but the problem we have in our area is that many times there are no comparables.  Many of our properties are unique in many ways. That has been a problem I have had as of late. Even the banks won't make the loans without a comparable within 5 miles from the property. In this rural area it poses a problem.

Jan 19, 2009 06:11 PM #3
Rainer
11,697
Cindy Hartpence
Edisto Real Estate Company - Edisto Beach, SC

Thank you for the great thoughts!

Cindy

Jan 19, 2009 11:02 PM #4
Rainmaker
89,069
Casey Joiner
Scenic Sotheby's International Realty www.caseyjoiner.com - Destin, FL
Scenic Sotheby's International Realty

Nice work.  Trouble down here is convincing sellers that short sales are in fact comps.  They seem to want to exclude those like they don't count to the comp.

Jan 20, 2009 08:22 PM #5
Rainer
26,047
Gary Ward
Advantage Chatuge - Hayesville, NC

Well Casey should they? Short sales just like foreclosures happen because the owner was not  responsible enough to pay their mortgage, or got in a situation where they lost their jobs and couldn't pay. Unless you are in an over bloated priced area, which perhaps Destin is, including distressed properties in a comp to set price is only going to pull down the whole area in the market and perhaps unjustly. I really think it depends on the area and the situation of the seller.

Jan 21, 2009 07:58 AM #6
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Rainmaker
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Karyn Smith Woody

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