How Much Should You Offer?

This, of course, is the critical question when it comes to buying a house. In working with my clients to determine an appropriate offer, I try to help them answer 10 questions.

ABOUT THE PROPERTY

. How long has the property been on the market? (May indicate the seller's willingness to negotiate.)
. Has the price been reduced since the initial listing? (May demonstrate the seller's desire to attract offers.)
. Have there been other offers on the property? (Helps to know what offers have been rejected and why.)
. What is the seller's motivation? (Helps with any negotiation. For example, if the seller has already purchased a home, your ability to close quickly would be attractive.)
. What personal items are included in the sale? (Anything the seller leaves behind that you can use has real value.)

ABOUT THE NEIGHBORHOOD

• What are the sale prices of other properties in the area? (Indicates high and low prices in the specific market.)
• What is average length of time for which properties are listed? (Short market times may indicate a seller’s market, meaning competition among buyers.)
• What is the list-to-sale-price ratio in this area? (Indicates sellers’ past willingness to negotiate and by how much.)
• What is the average sales price per square foot of homes recently sold? (An effective measure where there are similar homes, lot sizes and improvements.)
• What other known factors could affect value?
(Read seller’s disclosure statement carefully.)