Determine an Offer Price

You know what the seller's listing price is. How do you determine what price to offer?

Comparable Sales

Begin by studying similar properties that have sold recently to get a sense for what the market has been bearing. Look for similarities such as the number of bedrooms and baths, square footage, garage space, views and construction. Depending on how active the market's been, there may be comparable sales looking back over the last quarter. If not, you may need to extend your search. But where do you find the recorded sales transactions?

This is one of the many valuable services we will provide, because while you can find active MLS listings on our website, only real estate professionals have access to MLS recorded sales. While it's true that you can search the local county recorder's office for recorded deed transactions, the process is time-consuming and the records are always at least six to eight weeks behind recording the deed after a typical escrow period which may last an additional six weeks or so. When you are ready to look at comparables, give us a call!

Condition of the Property

The next step is to determine the condition of the property. We will schedule a walk-through at at time when the seller is not present so you can discuss your questions freely with us. Evaluate the condition of the property relative to your other comparables. Look objectively at the structural integrity of interior and exterior walls, flooring, windows, roof and basement. You should be looking for unusual signs of wear such as cracks in the foundation; rotted windows or siding; evidence of water damage in ceilings, walls, flooring or basement; missing shingles or evidence of patching.

In addition to signs of structural wear, what is the condition of its cosmetic appearance including interior and exterior paint jobs, carpeting, or wallpaper? Will you need to repaint or replace any carpeting anytime soon? What about the lighting? Do all the lights work?

What is the condition of the bathrooms and kitchen, which are the most expensive rooms to upgrade? Do the faucets leak? Are they hard to turn on and off? Is there evidence of water damage under the sink or around the toilet or tub?

It's our job to stay abreast of the properties on the market. Ask us if we've been in the properties that have been determined to be comparables so you can compare their condition to the property of interest!

What are the market conditions?

The current market conditions will also affect the price you offer. In a seller's market, often called a "hot" market, the seller may be entertaining multiple offers, and the price you offer, the amount of earnest money you are willing to put down with the offer, as well as your status as pre-qualified or pre-approved, will all come into play.

In a buyer's market when properties remain on the market longer, sellers will typically have fewer offers and may even be forced to reduce the original asking price to induce offers. You will typically have more leverage when negotiating, and submitting a lower offer will often at least initiate a counter-offer so that a mutually agreeable price can be established.

So what price should I offer?

Now that you have the information you need to objectively evaluate the property, sit down with us and leverage our experience to determine the offer that you wish to extend!

Next step: Writing an Offer!