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TEN QUESTIONS TO ASK
YOUR REALTOR BEFORE
YOU MAKE YOUR NEXT OFFER!
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Property Specific
- How long has the property been on the
market?
Why: The length of time a property has been on the market may indicate
the seller's willingness to negotiate.
- Have there been any price reductions
during the listing period?
Why: The amount of any price reduction, as it relates to the overall
purchase price, may indicate the seller's desire to attract an offer.
- Have there been any other offers on the
property?
Why: It will be helpful to know what offers have been turned down and
for what reasons.
- What is the motivation of the seller?
Why: Motivation is a key element in any negotiation. As an example, if
the seller has already purchased a new property, your ability to close
quickly may be an attractive element of the negotiation.
- What personal items are included in the
sale?
Why: Anything the seller is willing to leave behind that you won't
need to buy when you move in has real value. Consider those items in
your offer.
Neighborhood Specific
- What is the price range of
sold properties in the area?
Why: This information is important since it will indicate the top
and bottom of that specific market.
- What is the average time on market for
properties in this area?
Why: Short market times may indicate a seller's market. If this is
the case you may face competition from other buyers.
- What is the list to sale price ratio in
this area?
Why: This information will indicate sellers past willingness to
negotiate and by how much.
- What is the average sales price per
square foot of recent solds?
Why: This approach to establish value works best in Planned Unit
Developments ( PUDs) and/or where there are similar homes, lot sizes
and improvements.
- What other known factors about the
property or neighborhood could affect value?
Why: Review the Seller's Disclosure Statement very carefully with
your Sales Associate.
Final Recommendation If you will be financing the property,
get pre-approved for a mortgage prior to making your offer. This
will show the seller your commitment and ability to perform.
Pre-approval can be extremely important in the sellers' market.
*Depending on the type of agency relationship you have with your
Sales Associate, he or she may not be able to assist you with these
specific questions. |
