In this market you’ll be able to find superb deals when it comes to buying a home. If you are equipped with some knowledge and know how you will have the upper hand when it comes to negotiating.
The home seller priced the home at $200,000 many home buyers will right away come up with their offer price without doing any research. Look at comps in the area. You need to figure out if the home is below, above, or at market price.
Below Market Price
If you find the home is priced below market price you or your agent should call the listing agent and see whether there are any current or expected offers. If there are offers already you may have to go in with a strong offer and an escalation clause. If there are no offers and it’s new on the market, you can test your luck and go in low but give the sellers a little while to reply to your offer. I would suggest only a 24 hour period of time. If you can get the seller to sign off on your offer within the period of time then you will have the home locked in and block out the other home buyers. Most houses that are priced below market in the Seattle Real Estate market only stay on the marketplace for about a week. If you can put in an offer in the first 48 hours you’ll have a massive advantage. If you wait much longer you will probably be bidding with another purchaser.
At Market Price
If the home is at market price you’ll want to see how long it’s been on the market for. Often agents like to drop the price every 30 to 45 days. If the home has been on the marketplace for 29 days with no price change then it’d be fair to say you can go in at roughly 10% to 15% under price. If the houses price dropped within the last week you’ll have to go in a bit stronger about 5% under asking. Again it’s always good to call the listing agent before hand to check on the activity.
Above Market Price
If the home appears to be overpriced then you should show the sellers your comps. There remain a lot of sellers that still see their home priced back what it had been a one or two years back. If you cannot persuade the sellers to come down to market price or below you are going to need to track the home. If a seller has to sell the home then they’ll eventually drop the cost of the home. In numerous cases it will sell for a lot less than what they could have got if they weren’t so stubborn.
The quick lesson on this article is not to pay to much attention on the listing cost. You want to run your own comps and come up with what you believe the house is worth in the current market. When trying to find sold houses attempt to stay within a mile radius of the subject home and use homes that have sold in the last 6 months. If you are running comps on a condo or townhome try to only look in the same complex. Pay special attention to sq footage and price per sq footage. You can usually come up with a base price on square footage and then add or take for upgrades, etc.