That’s a very “loaded” question, and we can hear the one liner jokes now! The truth is that the correct answer will be different for every buyer. Here are some things to consider before you make your offer:
1. Is the asking price reasonable?
2. Is the asking price within my budget?
3. How long has the property been on the market?
4. Are there others prepared to make an offer?
If the asking price is not reasonable, but you still want to make an offer, your buyer’s agent should go over the recent sales prices of homes that have sold recently in the area to give you an idea of what should be a reasonable offer for the home.
If the asking price is at the top of your budget, make the best offer possible, but stay within your budget if the offers go above and if so, walk away. There will be others.
If the property has been on the market for a long time (that can be different from city to city), try to find out why? Was the original asking price too high or is there something wrong with the property? A busy street? etc.
If the home has just come onto the market and the open house is really busy, chances are that there will be more than one offer. Make sure your financing is in place and that your agent provides the listing agent with a preapproval letter from your lender with the offer.
In our market, Newton & Metro West of Boston, it’s not uncommon to see multiple offers on the same property and that then selling price may be over the original asking price. Cover letters introducing yourselves to the seller are becoming more common too. If you have questions about the process, give me a call or email. I’ll be happy to guide you.
