In this market you will find great deals when it comes to buying a home. If you're outfitted with some information and know how you will have the upper hand when it comes to negotiating.
The seller priced the home at $200,000, many home buyers will instantly come up with their offer price without doing any research. Look at comps in the area. You need to work out if the house is below, above, or at market cost.
If you discover the home is priced below market price you or your agent should call the listing agent and see whether there are any current or predicted offers. If there are offers already you could have to go in with a strong offer and an escalation clause. If there aren't any offers and it's new on the market, you can test your luck and go in low but give the sellers a short time to reply to your offer. I'd suggest only a 24 hour time period.
If you can get the seller to sign off on your offer in the time period then you'll have the home locked in and block out the other purchasers. Most houses that are price below market in the Seattle area only stay on the marketplace for roughly a week. If you can put in an offer in the first 48 hours you will have a massive advantage. If you wait much longer you will very likely be bidding with another purchaser.
If the house is at market price you are going to want to find out how long it's been on the market for. Generally agents like to drop the price about every 30 - 45 days. If the home has been on the marketplace for 29 days with no price change then it'd be reasonable to say you can go in at about 10% to 15% under listed price. If the homes price dropped within the week you may have to go in a bit stronger at around 5% under asking. Again it's always good to call the listing agent before hand to check on the activity.
If the home seems to be overpriced then you should show the sellers your comps. There are still a lot of sellers that still see their home priced back what it's a one or two years back. If you can't convince the sellers to come down to market price or below you are going to need to watch the home. If a seller has to sell the home then they may ultimately drop the price of the home. In many cases it'll sell for a little less than what they may have got if they were not so unrealistic.
The quick lesson of this piece isn't 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 prevailing market. When attempting to find sold homes attempt to stay with a mile radius of the subject home and use houses that have sold in the last 6 months.
If you are running comps on a condo or townhome try and only look in the same complex. You can use websites that have map searches or feeds to certain properties. If you are in a gigantic town try and be neighborhood specific. There are many great web sites for each major city that may have neighborhood specific feeds. For instance if you live in Seattle and are looking at Queen Anne Real-estate look only in that neighborhood for comps. Pay special attention to square footage and price per sq footage. You can mostly come up with a base price on sq footage and then add or take for upgrades, etc..
The seller priced the home at $200,000, many home buyers will instantly come up with their offer price without doing any research. Look at comps in the area. You need to work out if the house is below, above, or at market cost.
If you discover the home is priced below market price you or your agent should call the listing agent and see whether there are any current or predicted offers. If there are offers already you could have to go in with a strong offer and an escalation clause. If there aren't any offers and it's new on the market, you can test your luck and go in low but give the sellers a short time to reply to your offer. I'd suggest only a 24 hour time period.
If you can get the seller to sign off on your offer in the time period then you'll have the home locked in and block out the other purchasers. Most houses that are price below market in the Seattle area only stay on the marketplace for roughly a week. If you can put in an offer in the first 48 hours you will have a massive advantage. If you wait much longer you will very likely be bidding with another purchaser.
If the house is at market price you are going to want to find out how long it's been on the market for. Generally agents like to drop the price about every 30 - 45 days. If the home has been on the marketplace for 29 days with no price change then it'd be reasonable to say you can go in at about 10% to 15% under listed price. If the homes price dropped within the week you may have to go in a bit stronger at around 5% under asking. Again it's always good to call the listing agent before hand to check on the activity.
If the home seems to be overpriced then you should show the sellers your comps. There are still a lot of sellers that still see their home priced back what it's a one or two years back. If you can't convince the sellers to come down to market price or below you are going to need to watch the home. If a seller has to sell the home then they may ultimately drop the price of the home. In many cases it'll sell for a little less than what they may have got if they were not so unrealistic.
The quick lesson of this piece isn't 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 prevailing market. When attempting to find sold homes attempt to stay with a mile radius of the subject home and use houses that have sold in the last 6 months.
If you are running comps on a condo or townhome try and only look in the same complex. You can use websites that have map searches or feeds to certain properties. If you are in a gigantic town try and be neighborhood specific. There are many great web sites for each major city that may have neighborhood specific feeds. For instance if you live in Seattle and are looking at Queen Anne Real-estate look only in that neighborhood for comps. Pay special attention to square footage and price per sq footage. You can mostly come up with a base price on sq footage and then add or take for upgrades, etc..
About the Author:
Use the Seattle Property Listings site to find Seattle Real Estate for sale in and around Seattle. Scan a list of neighborhood specific properties like Queen Anne Homes, Ballard Homes, Fremont Homes, Wallingford Homes, and other area. View pictures, schedule home tours and more.
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