What to Offer or Not
Most of the time when you start looking for a home, you search
by price range and neighborhood. And when you find the right home
your first question is "What's it worth?"
You probably already have an idea of what you want to offer?
Right?..But how accurate is it?
When I'm out with a client and you get that warm and fuzzy feeling,
you want to know what to offer. I don't answer right away until some
analysis has been done.
Like a 6 month review of a neighborhood. In Dallas, home prices have
fallen in general and prices are lower across the board. Location and
neighborhoods do make a difference.
You need to break down by area, location, maybe even street, sq ft
bedrooms, baths and amenities. If you are looking at condos you need
to just look at the specific building to determine value.
You will also want to investigate the tax records and speak to the listing
agent to find out what you can about the property and sellers circumstances.
As much as you can. Also researching how many MLS numbers a listing
has had can tell the torrid history of a property the seller is not even aware of.
When you're done with this review, you'll know if the property is priced
Why is this do important? Because you don't want to pay too much!
If it is priced well above the market your chance of making a deal is slim,
unless it's been on the market for let's say 150 days, you can use that
Also, if it's never had a price reduction and it's way overpriced it will be
harder to buy. But that does depend on the seller. period.
So as a buyer each offer you place on a property should have a strategy
and price range for you to buy. In this market, be prepared with several
Why? Because some sellers are chasing the market and aren't willing
to concede on price just yet. Chasing the market down means sellers
think their property is worth more than you're willing to pay.
Be prepared to try a few times especially if a home is overpriced.
The list to sale price 6 months ago used to be around 96-98%, now it's
93-95%. Make sure you know the total stats of a neighborhood to see
if your offer is realistic and sellers pricing is in the ballpark.
That will determine if you can make a buy. The best way to negotiate
with sellers chasing the market is with cold hard facts. You can't
dispute sold properties but a seller can unfortunately chose to ignore
the truth and hope for a better offer to come in. Sadly, that's why it's
called chasing the market down, their next offer will be lower, I can
almost guarantee that.
So for those sellers it's best to take your home off the radar and wait
for the market to come back and meet your expectations. It's gonna
be a while...
And for buyers...Next home, please...