What Do We Need To Offer To Get This House Or The Art Of Making And Aggressive Offer
'First, I won't qualify the aforementioned buyer as in or ex perienced...this is because the real estate market is dynamic and the fluctuations in price and inventory makes prior experience in a particular home market irrelevant.
A sellers market is one in which the sellers are at an advantage and this equates to higher prices. This is where most real estate markets sit at the moment, none more so than New Orleans. When a seller lists a home now, expect multiple offers on it in this market( assuming the house is priced correctly).
This creates a panic among buyers. I have seen buyers who are resentful and exasperated with the whole process and who conclude their own agent is unpopular or uninformed if they miss out on a home listed and under contract the same day, or even that the listing agent has their own agenda and is influencing the seller to reject certain offers.
This is false. Truly. Agents are not allowed to hide an offer from a seller. All agents want to do a good job and get the right buyer to the closing table on the right house the fastest. Here, the 'right buyer' is the one who can buy the home and has realistic expectations about the sale and actually buys the house.
The question every buyer should ask himself when making an offer on a home is:
1. What is my highest and best offer I can make?
2. What is the dollar amount I can place on the emotional value of owning this house, after looking at comps?
3. What amount can I live with offering and end up getting/not getting the house?
By and large, the lender drives the answer to question #1, but there is always an amount a buyer is willing to offer over asking price/ average comps for a house they really want. This is the answer to #2. This amount may not always be what the house is offered at, will sell for in 2 years, or even appraises for this minute ...but it will be the difference in whose offer is accepted in a sellers' market. There needs to be a real $ attached to what is OK to offer without regret if another buyer gets the house. It's the amount that a buyer can say, " All I am willing to offer is *&%#$@. If that's not going to get the home, I'm moving on". This number can be different with all homes, but it is important that you can answer all 3 questions quickly if you want to get an accepted contract.
I hope this tool helps buyers get a handle on the process of buying a home, because it can move fast and get crazy. A little luck and good karma never hurts, either.
from original content posted on my blog everythingrealestatenola.blogspot.com