If you are not working with a Realtor, now is the time, interview more than one and choose the one you like best; he/she will be able to provide you with comps and guide you along the way.

Anna

Hi LF,

Are you working with an agent?

Robin Lynch
Keller Williams Realty Group
914-315-6182

Hi, Here is a blog post that I wrote a fe months back. Hope it helps guide you.

There are many factors that go into a purchase offer and the Buyer Client is the ultimate decision maker.

These factors are as follows:

1) Price of similiar properties, normally the Agent will put together a CMA (Comparative Market Analysis) that will accompnay the offer. This way the Seller and Listing Agent see that You have done your homework and understand what comps We used to make Our decision.

2) Property Condition - Is the property in good condition or in need of updates and repairs. Will the buyer have to invest alot of money for the repairs?

3) Length Of Time On The Market - A long period of time on the market may indicate a slow market, there is something inherently wrong with the property, or the property is over priced. Over pricing is usually the number one reason a property will sit.

4) Supply And Demand - The Buyers offer may compete with others. This happens alot in a Sellers market, but as We have seen in Our market lately multiple offers will come if the property is desirable and attractively priced.

5) Sellers Motivation - A Seller that is under duress or pressure to sell may be more receptive than one that wants to wait for the right buyer and price.

6) Terms - This is a very important part of the offer. The terms can make a world of difference, sometimes even more then the dollar amount of the offer. Again, this all goes back to the Sellers motivation. Some terms that make an offer more attractive are all cash, short closing period, no home sale contingency for the buyer, waiving contingencies such as a home inpsection or mortgage (I recommend these stay in), and few or nor Sellers concessions. The simpler the terms the more enticing the offer will be.


Sincerely,

Christopher Pagli
Licensed Associate Broker
Legends Realty Group
914.406.9023

Your local Scarsdale agent can guide you in presenting an offer that makes sense... working with the right buyer agent will help you realize your goal in being able to negotiate the best price and in locating the best value in purchasing your home.

Stop in our office at the Five Corners in Scarsdale....we are more than happy to help!

Jon

Hello LF,

This is a very good question! I often find myself explaining this very concept to buyers who are looking at me like I have three heads! You're right, it's very important to pick a starting offer that will not insult the sellers because even if you do end up coming to an agreement on price, the whole process can be negative and make for an uncomfortable closing!

Having said that, I do not discourage my buyers from doing a little "shopping' and making a low offer. It just has to be within reality.

The best way to accomplish this is to listen to your realtor as to what the market price is for the property. If the current market value is $175,000 an offer of $75,000 is just silly and will make you AND your realtor look sill too!

A lot of buyers out there think that because the market is down that people are giving their homes away. This is not the case. If your realtor tells you the market rate is $175,000, and they are on top of their game, that takes into account ALL conditions. Obviously though, if in your research you discover that the property is way over priced and only worth $100,000 then $75,000 wouldn't be such an insulting offer. (Although if the sellers really think it's worth $175,000, they will still be insulted!)

If you would like to discuss a specific property, feel free to call me or e-mail me anytime.

Walt FitzPatrick
Houlihan Lawrence
Bronxville Brokerage
914-513-9811
wfitzpatrick@houlihanlawrence.com