Deciding on what to offer on the home you want to purchase…
Congratulations! You found a Buffalo home that you want to purchase! After all that searching on the Internet, going to Open Houses and all this time together looking and we have found the house of your dreams. Now how do we make the it your Buffalo home?
Making the Offer on the Home
What you offer on a Buffalo home is dependent on many things. Do you want to offer above or below the asking price? Maybe you are thinking of offering the asking price. This is where we come in to assist you. We will have all the information that you will need to make a decision.
Remember that the decision is YOURS. Our role is to advise you based on what is happening in the Real Estate market. Each home is unique in how to approach an offer. Some homes are over-priced and the owner wants to negotiate, others are firm and will laugh at any offer other than full price.
Factors that affect your offer price
Is this a buyers or a sellers market? How are the homes selling in this community? Are they selling in a matter of days and with multiple offers? Is the community days on the market longer than 100 days? Depending on the type of market you may be able to offer lower than the asking price and still feel the offer will be taken seriously. If there are multiple offers on the table, you will have to step up to the plate or your offer won’t be considered.
Read Also: Mutiple Offers on the home I want
Several Realtors in the Greater Buffalo Area are listing homes on the internet with VIP pricing. What exactly is VIP Pricing? Well it is a way to get a home on the MLS with a lower price. VIP pricing is a technique to attract buyers to put an offer in on a property while at the same time pacifies a seller who may be reluctant to put their home on the market for a particular price because they don’t want to take less than a specific figure.
In other words it is a starting point, they really are looking for a lot more than that price. Basically they are telling you what their bottom line is. Is this good or bad? It is different and affects what we are going to offer on the home. It is out there, and you should be aware of this strategy in selling.
How motivated is the seller to sell will affect their willingness to accept a lower offer. How many days on the market has this home been? Are there other offers? Has there already been several price reductions? Is the seller “Chasing the Market down”? Have they already purchased a home and the sale is contingent on the sale of this house? Are they testing the market? Are they relocating to another city?
Compare the most recent sold homes to that of similar homes in the area. Is the asking price in line with the most recent sales? How recent are those sales?
Read Also: How to get a Real Estate deal!
What you can afford
Dos this home stay within your pre-qualification? Can you comfortably afford the monthly payments, and save money for a “rainy day” and handle unexpected expenses? Just because you qualify for a particular amount doesn’t mean that you should go to that maximum amount.
Read Also: Why Pre-qualification is important
Your Motivation to purchase
You really have to ask yourself – How motivated are you to buy? If you really want the home, you may want to make an offer equal to or greater than the asking price. A good question to ask yourself is how upset will you be if you do not get the home? This is particularly an important question when you are faced with the fact that there are other people offering on the home as well. This means you need to bring your best offer up front or your offer could be rejected immediately.
You see there are many factors that will affect your offer price on a Buffalo home. Together we can put together an attractive offer for the sellers.
Thinking of purchasing a Buffalo Area home? Call us at (716) 650-0051 to discuss what is happening in today’s Buffalo Real Estate Market.
Thinking of selling your Erie County home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.