Are you out there in the winter snow looking for a new home? Maybe you’ve stumbled on a house that you especially like, and the critical question has arisen: what should you offer? How far below listing price can you go without insulting the owners, or should you go in the other direction and aim high? It’s a delicate science, and really tough to sort out without the help of a good agent. With that said, here are some points to consider.
What’s the market like?
The real estate market for a given area tends to swing either towards buyers or towards sellers. In Northern Virginia, it’s currently a medium-hot sellers’ market, meaning that inventory for sale is low and sellers can command more money, since their houses are in high demand. A buyer doesn’t have as much room to negotiate in a sellers’ market, because there may be a line of interested potential buyers lined up right behind you. In a buyers’ market, the local real estate scene is glutted with homes for sale, and buyers hold the trump card, so there is probably more wiggle room.
When was the home listed?
Another factor that can help determine what you can offer on a home for sale is how long that house has been on the market. This is a matter of public record, and can often be seen right alongside the house’s vital details. A house that is freshly on the market is a hot commodity, and there’s usually not much room for negotiation. On the other hand, if the home has been for sale for multiple months and has undergone several price drops, you can probably strike a good deal. Experts recommend never offering less than 75 percent of the asking price, lest you seriously upset the sellers and they refuse to sell you the house.
How badly do you want the house?
This, more than anything, is the biggest component of your offer price. If you have found what you think is your dream home, you don’t want to endanger your sale by lowballing the sellers. Especially if the market is hot, you should consider offering the full listing price - or possibly even more, if there are other buyers in the mix! If it’s a home that you truly want, submit your BEST offer the FIRST time. That way, you’ll never end up regretful about “the one that got away.”
