To Make An Offer or Not on a New Capital Region Listing?
You can’t believe it. After months of searching, a new Capital Region home comes on the market. You quickly schedule a showing, and by the end, you love the home even more. Now comes the big question: to make an offer or not on a new Capital Region listing?
There are certain pros and cons with making an offer right away versus waiting a while. Check out our guide to deciding to make an offer and decide for yourself.
Research the Market
Sure, the first offer may have a better chance of acceptance, but it doesn’t always get the best deal, especially when the market is competitive.
When the first offer comes in, buyers aren’t usually ready to accept a lowball offer. They figure if one offer came in, then surely more will follow, which could possibly lead to a bidding war and an even higher price than their asking price.
On the other hand, if the market is fast moving, then you can’t afford to wait. The best thing to do is study the Capital Region market. Watch a number of houses on your usual search list and see how long they stay on the market.
Be Fair with Your Proposal
You may think that savvy buyers consistently low ball sellers until someone eventually gives in, but if you go to low, you might actually offend the seller. If the seller doesn’t like you, he or she may refuse to negotiate at all and give you a flat “no.”
If you really love a Capital Region house that just came on the market, you should be fair when offering a price. Some sellers can get emotional about how others perceive the price of their homes. That’s not to say that you need to cater to their egos, but don’t insult them either.
Assuming the asking price is in line with the home’s value, try to come in at least no more than $10,000 below the asking price for new houses on the market. In the best cases, the seller will negotiate with you. You may not get your asking price, but you might get a few other goodies, such as contingencies and closing costs, thrown in to sweeten the deal.
Dress Yourself Up
Although price is a major factor, there are others that sellers take into account when selling a Capital Region home. Some want to get to know (at least on paper) the person buying the home. They want to know that their home is going to a financially stable person.
There are a few ways to make yourself look more attractive. Fewer contingencies – get-out-of-jail-free cards – are appreciated. These stop you from backing out of the deal. Putting down more money, at least 20 percent, is also a good idea. Doing so makes you look stable and more likely to close on the home.
Be Cautious
When sellers get a new offer quickly, they tend to think that they priced their home to low. As a result, they reject the offer and price the home higher.
In general, if you’re ready to buy a Capital Region home, make an offer – even if it is a new Capital Region listing. If you aren’t sure what you want or you don’t have all your financial ducks in a row, wait. Act when you’re 100 percent sure you can make it to the closing date.