Under or Over? It Depends.

I haven’t written about my work in a while. It’s spring, and spring market, and life is exactly the way a realtor would want it – busy with clients. The market is a tad different from what it was a year ago, but we still see multiple offers and quick sales, we see those for homes that are priced appropriately, ready to move in, and in sought after communities. I really like working in the current market.

Every now and again I run into brokers boasting about the discounts they were able to get for their buyers, by discounts I mean purchasing a home under the list price. I tend not to write about that, maybe I should, maybe I should tell the entire world that I managed to negotiate a home for $15,000 under the list price or $150,000 under list price, or should I? Sometimes my buyers end up purchasing a home for $15,000 or maybe even $150,000 over the list price. Negotiation is a skill for sure, and with skill my clients end up getting a home they love, sometimes below and sometimes above listing price. More than once or twice the offer I built with my clients was chosen even if it wasn’t the highest bid. It’s about the money but it isn’t all about the money.

When I work with buyers, we always have the same conversation about how there isn’t a set way to establish the price offered for a home. There isn’t a set way because every single listing is unique. Yes, I do the math by looking at comparable properties and recent sales, but it isn’t just about the math. There are quite a few moving pieces and sometimes the recommendation is to offer less, sometimes we go with the list price and at times the right choice is to go above. So, how do you know what to do? Talk with your realtor. How long has the home been for sale? Is the home priced right? Is it a home that is likely to have lots of traffic and multiple offers? If your realtor hasn’t already done so, ask them to talk to the listing broker as just like every listing is different, so are the owners of the home selling their property.

How much would you pay for this vacant little home?