Low-ball offers don’t work in today’s market
Vero Beach Florida - Jan. 25, 2017 – Anyone buying a property wants to get the best price and terms, and smart offers often lead to deals.
For real estate agents, a smart offer can not only helps close a deal, it also earns them the gratitude and loyalty of clients, especially if they also save thousands of dollars, both upfront and over the life of a mortgage.
Tips to put home or condo buyers in a better negotiating position
1. Understand the market
2017 is likely to remain a seller's market in most areas, but experts predict that buyers will have more choices in 2018 or 2019 as prices increase. Sellers with high loan to value mortgages will then be able to sell their homes and payoff a mortgage. Buyers of Vero Beach Real Estate should understand this to help set their expectations. If demand is hot and properties are scarce, buyers who want to play hardball have to think twice, or they may find their potential seller looking elsewhere.
2. Be realistic about price
In a seller's market, one of the toughest dilemmas an agent will face is finding a way to tell buyers that a house is beyond their means, especially when the buyer has already fallen in love with it. The current ratio of last listed price to closing price is 95%. If properly priced, sellers are not discounting desirable properties.
3. Don't submit "lowball" offers
The housing market has heated up in Vero Beach, so buyers who want to get tough with the sellers, will find it difficult to buy a home.
We're not in a market anymore where you can lowball somebody $20,000 below the list price. I tell clients to look at the listing and selling prices in a given area to help determine what's reasonable. If you're a buyer, don't lose your bid on a house to save $5,000. If you've found your dream house, do you really want to let it go for a $5,000 difference?
4. Ask for Comparable Sales Reports
We advise buyers to ask us how long the house has been listed and what are similar homes selling for. If it's been on the market longer than the average, the seller may be ready to bargain. Any problems with the house? Disclosing this information is required by law.
5. Get pre-approved for a mortgage
Getting pre-approval on a mortgage means buyers will know their price range and have a better chance at a smooth closing.
Sellers will typically ask for "proof of funds" or a mortgage pre-approval before considering an offer.