Once a Buyer has found the Lake Charles Home for Sale they want to purchase, its time to make the Offer. Be cautious when contemplating a low ball offer. Most Lake Charles home buyers are asking for closing costs, take this into consideration when coming up with your figure.
Everyone wants a bargain however buyers should be realistic when making an offer. If a home is priced at $278,000 and sold less than two years for $274,000, offering $250,000 is not going to be realistic! Sellers are not going to entertain offers that are less than they paid or owe for their home, put yourself in the seller’s shoes.
As your Lake Charles Realtor it is my duty to inform and guide Buyers how to write an accepted offer. Listed below are Helpful Facts and data to prevent being turned down by a Seller or offending a Seller with a low ball offer.
1. Market temperature matters.
The temperature of the market affects everything, We need to review and focus on what has recently sold in the last 60 days, rather than what is currently for sale in your market. Comps drive our market
One way to do this is to show the percentage difference between the actual list and sale prices for the properties in the area. Comparing list vs. sale prices also provides a strong indicator of which direction the market is moving and how much less, or maybe even more, than the asking price a buyer should offer.
2. Apples are apples.
When analyzing the comps, match to the subject home and review similarities or differences to other homes. Putting the potential new property head-to-head with the other properties on the market today or those that have sold within 60 days can help buyers understand how key details like square footage, amenities, lot size, age, condition, and others can affect the price.
3. Time is money.
Data from the National Association of Realtors® shows that the typical home search takes 12 weeks. By the time a Buyer is ready to make an offer, they have probably viewed several properties. If you wait too long a Buyer could lose out on the property they have found that is perfect for their needs. Saving time can be a serious motivator for buyers, especially those who have endured a long three months of hunting.
4. Sellers are people too.
If the sellers purchased their house between 2006 and 2009, chances are, they paid at the peak after Hurricane Rita so the value may have declined. A Seller is not happy about it and, whatever their reasons for selling, they are already very frustrated at having to sell at a loss. The sellers are already losing money and will push very hard not to lose any more. Entertaining a low ball offer is just going to aggravate the Seller.
A house is the setting of someone’s life. For the seller, its value includes what it represents, not just what it lists for. So while submitting a lowball price sounds like a great way to get a cheap deal, it can start the negotiation process on the wrong foot. A seller and a good seller’s agent will not take that offer seriously. In fact, even if they do respond, that seller now does not want to sell the home to your client and will do almost anything to encourage another buyer to step up.
When given the right data and encouragement most Buyers will understand the importance of submitting a reasonable initial offer.