What should you offer a Seller for YOUR new home?
The answer is, it depends. Market conditions and the seller dictate what an acceptable offer is on a home. Once you have an agreed upon contract, an appraiser comes through and confirms if it’s reasonable. You have one of three ways to go when submitting an offer; under asking, list price and above asking. There is no difference between the terms listing and asking, I just didn’t want to say listing three times. No matter which term you use, it’s the price that the seller wants and is advertising to the public.
It’s okay if you don’t want to pay full price for a home, market trends can be such that Sellers will accept offers below list price. This is great for the buyer because you have your pick of any home. There is an abundance of homes for sale and Sellers have to sweeten the pot to make their home stand out from the rest. Sellers are sitting on pins and needles waiting for someone to book a showing. To get a buyer to submit an offer, Sellers are willing to give you incentives to buy their home. They will help pay your closing costs, provide you with a home warranty, and buy you appliances to get you to sign on the dotted line. This is considered to be a Buyer’s Market. If the Seller isn’t offering any incentives, make sure you ask. You see a 60” TV in their living room, ask for it. Just don’t try this if the odds are not in your favor. Rely on your REALTOR’s advice for when you should submit an offer below asking.
Buyers will offer above asking when they are trying to stand out from the pack and secure their position as the winning offer. When you submit an offer that is above asking, you better really want this property. When a Seller gets multiple offers, they will have their agent reach out to Buyer’s to ask for highest and best. Some buyers will stand firm on their offers some will up the ante.
Make sure the property is actually worth what you are offering. Once again, after you are under contract, get an appraisal during your due diligence period. A bank is not going to lend you more than what an appraisal says a property is worth, regardless of how much you have in a preapproval or confirmed in an agreed upon contract. In North Carolina, your REALTOR gives you a listing of Professional Services that may be done as part of your purchase. These service providers give you a level of assurance that you are making a sound purchase. Use them. If you are purchasing your new home with cash, it’s up to you to take the initiative to get an appraisal. You won’t have the bank on your side requiring it.
This is what a Seller says they want for their property. If the Seller is utilizing the services of a REALTOR, and they should, the list price is determined by doing a Current Market Analysis. We’ll save explaining CMAs for another day. Just know that as REALTORS, we are not pulling numbers out of the air when determining what you could potentially get for your property. Also know that as a Buyer’s agent, we are also analyzing the market to ensure that if you submit an offer at list price, it is substantiated.
The general theme here is use a REALTOR whether buying or selling a home. You want to have multiple sets of eyes looking out for your best interest when purchasing a home. So, give me a call today and let’s throw your hat in the ring to sell your existing home or buy a new one.