The home of our dreams vs. the dump that has a low price!

How low can ya' go?

Skip, we have found the home of our dreams, and we have decided to offer 50K under what they are asking because it is a "buyers market"!  Let's ask a few key questions before we go too far...
1. Are the sellers close to the true market value?
2. Do the sellers hold a mortgage that will prevent them from accepting a low offer?
3. Have the sellers done improvements to justify their price? 
4. Has the seller gone through multiple price reductions, and when was the last reduction ?
5. If you were the seller, how would you react to your offer?

 "Hey Skip, isn't any offer is better than no offer?"....Yes!  I have heard this statement a lot with the economy like it has been in the last few years.  Any agent who has some experience under their belt will tell you that AN offer is better than NO offer; just keep in mind, this is a place to get the negotiations started.
"I have been listening to the media, and they are saying the deals are better than they ever have been in years past, so I think I should come in really low and get a steal of a deal."  Yes, I agree, so let's just take a scenario to illustrate my point...the sellers of the home you have fallen in love with have been reducing the price of their home with the fall of the market, and I show that to you by showing you their price drops over the time the seller has had the home listed.  I, as your agent, have shown you the Current Market Analysis which reveals the sellers have the price very close, or below, it's true SOLD value.  You also note that the home has a long list of upgrades like granite countertops, hardwood flooring, sprinklers, etc., and has been well-maintained, which does not seem to match the other homes you have been looking at in your price range. So now, you tell me, is the 50K under asking price offer a reasonable expectation on our part, as a potential buyer?  I would say no.  If you offer something that low, you should expect the seller to come back really strong on their original price, with the thought you are not a serious buyer.  If you want to come in really low on an offer, one way to shore up the seller's confidence in your offer is to increase your Ernest Money Deposit or EMD, which is usually 1% or $1000, to let's say $5000, which would make the seller think you were more serious and really capable of purchasing their home.  Make sure you have a proof of funds and/or a pre-qualification letter from your lender to show your ability to purchase their home. Keep in mind some of this is a mind game on our par,t and if we can stack the cards in our favor, we should.  This is a wonderful time to buy with interest rates so low and the home prices really low.  It has never been a better time to buy.  Just keep in mind you need all the facts to really get the best deal out there!

Grace and Peace...

  

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

        

      

Buying our first home.....scary or an exciting new step?

 

   "Skip, I am looking to buy our first home but I just don't know how this process works...Can you Help?"  Wow, I am glad you asked!  When you have a buyer's agent working for YOU, what you get is a partner that is going to look out for your best interests.  "But, Skip, I don't think I can afford to pay you to help me...I mean, I am on a budget, and I want to get the most bang for my buck!"  I agree, and that is why you need to have a full-time Realtor working just for you...so you can get the most house for your money.  I mean do you want to look at foreclosures, short sales or typical owner-occupied homes?  Does your mortgage allow you to get a home that may need repairs, and which repairs?  What if you qualify for a reduced rate on your mortgage, and which homes will qualify for these programs?  You see, you as the buyer you do not pay the agent...the seller is typically responsible for that fee.  So, as a buyer, you are leaving money on the table, so to speak, by not having a professional working for you.  "But what about the for-sale-by-owners, will I be missing out on them?"  No,  if you have a buyer's agreement with your agent, you get all the homes on the market.  Plus, how do you know if you are you are getting a good deal when working with a for-sale-by-owner?  I, as your agent, can help make sure you are protected.  As a Realtor, I took an oath to hold my clients' best interest above my own, and I believe we, as Realtors, offer a very valuable service...This is most likely the largest asset you will own in your lifetime, GET SOME HELP!  Think about it.  I don't cost you anything, and have the potential of saving you thousands of dollars. How much are you willing to lose?

Grace & Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

The Geiser Team with Main Street Properties 

 

"I will sell your house or I will buy it"... sounds too good to be true? Well, probably because it is!

 

Ok, as you read the next sentence you have to use your radio salesman voice... "I will sell your house, or I will buy it." Sounds too good to be true? Well, probably because it is! Oh technically will they buy it, sure, but the real question is will you sell it for what they want to buy it for?  Let us keep in mind you are dealing with a person who is running a business, and that person can't give money or time away or they won't be running a business for long.  So what are THEY going to get out of this deal?  Usually when I hear this idea being "sold" the agent will offer to sell your most prized possession and tell you "well you should list you home with me because if I don't sell it I will buy it" ...of course, at a large amount BELOW market value, using their title company, and only if you allow them to choose ALL the selling factors during the time they have your home listed... So after your home doesn't sell, what have you really agreed to?  Your home will get appraised, or worse yet a Current Market Analysis done, to determine the value of your home. Then, the agent gets to knock off a certain percentage so they can resell it for a fast turn around and profit, or better yet, keep it for a rental of their own. On a side note, why would you as a seller want to give your agent any good reason not to sell your home, so they can can make money even when it doesn't sell?

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties