In this period of unstable home prices it can be really difficult for buyers to figure out what price to offer on the home they want to buy. Tara-Nicholle Nelson offers some great advice on determining an offer price in today's Inman News.
Many people have buyers’ remorse after their offer is accepted as they second guess the price and wonder if they offered too much. Today’s market encourages buyers’ remorse with news of declining home prices and homes languishing on the market. In this market, buyers are much more likely to make extremely low-ball offers because they don’t want to risk offering more than a desperate seller will accept or more than a home’s fair market value. Nelson reminds buyers that their goal is to purchase the home, not to affirm that they have sharp negotiation skills. Although prices have dropped and there are some overpriced properties on the market, sellers still have to protect their own interests and there are still other people out there buying homes so buyers who offer much less than fair market value just because they believe that every seller is desperate are unlikely to see their offers accepted.
According to Nelson, it’s very important to determine the home’s fair market value by reviewing the prices of similar homes in the area that sold recently. Other important factors will be how motivated the seller is (look at factors such as the number of days on the market and the circumstances surrounding the sale), how much you can afford to pay, how much you want the house and whether there are multiple offers.
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