Joe And Doug Williams

The Price is Right?

04 July 2019
Joe And Doug Williams

How much should I offer on a house?

 

Often the most challenging decision when making an offer is deciding on price. There are

both “soft factors” & “hard factors” to consider when deciding on your offer price.

 

Soft factors would include the buyer’s personality & goals, the seller’s motivation, and the level of interest in the house. A buyer may only want to buy a house at a certain price - or they may be madly in love with the house - and are willing to overpay a little bit. A seller may be eager to negotiate - in which case, a buyer can leave room for back-and-forth counter offers. If there is lots of interest in a house, the buyer will want to sharpen their price to arrive at a quick purchase. If there are multiple offers on a property, a buyer loses most of their negotiating power - and may end up offering over list price.

 

Hard factors would include the value of the home, market conditions, and other material aspects of the offer. The market value of a home should be the most important factor when arriving at an offer price. Comparable sales, price per square foot, and land values are all helpful when determining value. Market conditions can influence your offer price: how long do houses take to sell in the area, and on average what percentage of the list price do they sell for. Other material aspects of the offer can impact your offer price as well. If an offer has onerous conditions, and a difficult closing date, it will be harder for the buyer to negotiate a lower price. Whereas - a more straightforward, “clean” offer (normal conditions, good closing date, good deposit), could lead to a lower price being accepted by the Seller.

 

There are a number of factors that can influence what price you offer a seller. We can help you work through these factors, and guide you through negotiations to a satisfying conclusion! If you think of friends or family that could benefit from our services, please pass on our contact. We appreciate your referrals.

 

Have a great summer!