What is a good deal?
Posted by Jason Lapene on Jul 08, 2015
Well everyone knows that we are in a buyers market. It’s no secret that homes have been sitting waiting on potential buyers to write an offer and hopefully take ownership. Still, when do we know if we got a good deal? My idea of a good deal is a state of mind. After all, real estate is worth what people are willing to pay. While comps are used to justify a sales price, it’s actually the home buyers who decide what market valuse is by paying what they are willing to pay.
A common practice in this market is to “low ball” or submit offers that are just way below anything that makes sense. I can’t blame a person who wants to get a great deal in this market. But let’s be realistic, offering a large amount below a asking price isn’t going to get you anywhere.
You don’t have to write a low ball offer to ensure yourself that you are getting a good deal. Have your agent look at the comps, active homes on the market and average days on the market. It would also be wise to try to find out how much the sellers have in equity. At times, emotions get in the way of good judgement, and if we truly know what we are working with we will know how to better present an offer.