Sellers who had their homes on the market for a longer period of time are usually anxious to move on. Other sellers will choose to let their listings expire and try again later in the year or the following year. Second time around they are more likely to be willing to make a deal in order to sell their property at a lower price than they were originally asking.
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Buyers should be aware. Here are common mistakes some buyers make when they try to get a bargain.
1. Know your market
Before submitting an offer, the buyer should do a full comparative market analysis of the property to determine what its fair market value is. Alternatively buyers should view as many properties as possible and keep an eye on what properties are selling for (rather than what they are advertised for).
2. Choosing a popular property
If it’s a popular property that has several offers then the seller is highly unlikely to accept a lower offer. Expect to pay above the asking price and don’t expect to get a second chance. Ask the real estate agent if there has been any previous offers on the property and see if the agent will disclose why the offers were not accepted.
4. What is your max price?
Buyers should set their walk-away price before the first offer is submitted as at some point, the property is not worth what the seller wants. Also, don’t be too firm on the first offer. For instance stating that the first offer is the best and highest offer is not going to get a buyer anywhere when the buyer subsequently counter offers what the seller is coming back with.
5. Making a clean offer with no or little strings attached
A clean offer is always going to be more attractive than an offer that has heaps of conditions attached. For instance a subject to sale of another property is never going to be a strong offer so the buyer needs to compensate for that with your offer.
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Buyers should be aware. Here are common mistakes some buyers make when they try to get a bargain.
1. Know your market
Before submitting an offer, the buyer should do a full comparative market analysis of the property to determine what its fair market value is. Alternatively buyers should view as many properties as possible and keep an eye on what properties are selling for (rather than what they are advertised for).
2. Choosing a popular property
If it’s a popular property that has several offers then the seller is highly unlikely to accept a lower offer. Expect to pay above the asking price and don’t expect to get a second chance. Ask the real estate agent if there has been any previous offers on the property and see if the agent will disclose why the offers were not accepted.
4. What is your max price?
Buyers should set their walk-away price before the first offer is submitted as at some point, the property is not worth what the seller wants. Also, don’t be too firm on the first offer. For instance stating that the first offer is the best and highest offer is not going to get a buyer anywhere when the buyer subsequently counter offers what the seller is coming back with.
5. Making a clean offer with no or little strings attached
A clean offer is always going to be more attractive than an offer that has heaps of conditions attached. For instance a subject to sale of another property is never going to be a strong offer so the buyer needs to compensate for that with your offer.
A cash offer is a strong offer but a cash offer can still fall through. A seller will still look at the overall offer before making a decision so if your offer is almost as strong as the next offer that is subject to finance you may still loose out.
There are always good deals to be make for the astute buyer. Prepare yourself as much as possible and educate yourself about the local property market that you are about to buy into.
Readers should always seek their own independent advice prior to making any decisions regarding property or finances.
Really very nice post its all information is helpful for me and other users.
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