J J Ballard Broker/OwnerLicense #: B.0019363.CORP

J J Ballard Broker/OwnerLicense #: B.0019363.CORP

How do I know what to offer a seller for a home?

 

"How do I know what to offer the seller?"

That is a great question and one we get asked often. Nobody wants to overpay for a piece of property, they want to get a good deal. And markets are vastly different from one region to another, especially considering what’s going on in the country. Right now, we are in a sellers’ market, but we have been in buyer’s markets, the pendulum always swings between the two, and your philosophy of what to offer is different in each market.

So one of the best ways to find out what to offer is to first seek out a very experienced Agent who has done a lot of business in that area and ask them, when you find the property you want, to run a competitive market analysis (CMA) for you. A CMA will tell you what similar properties in that area are being purchased for by other buyers, this is the information that appraisers will utilize and which is required by most lenders.

Several other things to look at are how many days has the property been on the market; fewer days indicate a seller's market, whereas more days indicate a buyers’ market. Also, you can find out the percentage of list price to purchase price, this will be a good indicator of the type of market we're in. I’ve been in markets where the average purchase price has been 4-5% over list price, conversely, I’ve been in markets where the average purchase price was 10% under list price.

So you really need to know what’s going on in the market to make an informed offer and these figures will tell you. Never be afraid to talk to your Agent and ask for this information, good Agents will provide all the information you need to get the best deal.

 

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