Apr 30 2009
5 questions to ask your real estate agent before writing an offer.
* Q: What did the seller pay for the house?
A: This question will help determine if values are increasing, decreasing or staying flat in the area.
* Q: What do they owe on the house?
A: This will allow you to know if they can sell the home easily while paying all the fees or if they will need to bring money to sell the home. In the case that the seller’s must bring a check to closing , is this possible or will the home be sold as a short sale? Short sale means the bank will sell the home for less than the current owner owes the bank. Bank will ultimately have the final say on whether they will accept less or allow the home to go to a foreclosure sale.
*Q: How much are similar homes selling for in the subdivision/area right now?
A: Ask your real estate agent to prepare a Comparable Market Analysis (CMA) to determine the range of current prices for the neighborhood. The time frame of 3 months or less is a good place to start. If no homes have sold in the past three months there may be economic issues at play such as: Stable neighborhood due to very few homes for sale or resale houses are competing for attention due to a new home builder in the area selling new homes for the same cost.
* Q: How long has the property been on the market?
A: Time on the market can either have a positive or negative effect on price. The longer a home is on the market and not selling the more opportunity there is to make a lower price offer. The less time the home has been on the market makes it harder to negotiate on price. If a home is priced competitively, it may actually create excessive demand and ultimately lead to a higher priced sale than originally offered.
*Q: How many offers have the sellers received on the property?
A: If the home is priced very well and is on the market for only a few days, a seller may receive multiple offers. Multiple offers are when many buyers want to purchase the same home and are competing with each other which will in turn make buyers increase their home offering price to win the home. Many times the agent who is working with the seller will contact a buyer’s agent to ask that the buyer submit their highest and best offer on the property.
Hopefully these questions will allow you to make a great offer and find a well-priced home that fits your budget!
Looking to buy or sell a home in Mayfair?
Call me/text me/email me. I’m here to help.
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Jennifer Pollock, CRS
Keller Williams Denver Central
Mobile: 720-495-9404
Email: Jennifer@JenniferDenver.com
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