Overland Park Real Estate. How Much Should You Offer?Overland Park Real Estate. How Much Should You Offer?
A good starting premise is that everyone wants to buy a home for thousands of dollars under market and when the time comes, to sell that home for thousands of dollars over market. This is basic human nature. When you are in the position of making an offer on Overland Park real estate property there are certain facts you need to know.
Gauge the Market
Is it a Buyerís Market or a Sellerís Market? In a Buyerís Market conditions favor the buyer. Overland Park real estate listings are plentiful, home sales are declining or stagnant. In a Sellerís Market the opposite is true. There are more buyers looking for homes than there are homes available. Your low-price offer is far more likely to succeed in a Buyerís Market than in a Sellerís Market. How do you know what kind of a market exists? Ask your REALTOR, read the newspaper, check online.
What Did the Seller Pay?
Or more precisely, what does the seller owe on the property. If a seller owes $400,000 on the Overland Park real estate he or she is not likely to welcome an offer for $350,000. If you want to negotiate price, make sure you donít waste your time negotiating where there is no room to budge.
Is the Seller in Default?
Even if the loan is high, if the seller is in default there is a possibility of a short sale as many lenders will reduce the loan balance in order to move the property. Most lenders do not want to foreclose and manage homes.
What are the Comps?
Comparable sales figures is a good guide for homeowners who are pricing their Overland Park real estate and a good guide for prospective buyers. Make sure you compare homes that are similar to the one your are considering...the same neighborhood, the same size, the same condition. Also, make sure you compare sales within the past six months.
Compare List to Sales Price
Ask your REALTOR for a comparison of the list price and sales price of comparable Overland Park real estate sales. This information may give you a trend and a guideline for your offer. For example, maybe homes in the area have consistently listed for more than they actually sold for. If that is the case, find out what percentage of reduction occurred. Use this information as a basis for your offer.
How Long on the Market?
If a home has been on the market for a long time for your area, the owners are more likely to accept a lower offer than if the home has just been listed. Make sure you ask your REALTOR if a new listing is really new or was it listed previously but did not sell. Whenever a home is on the market for too long a period of time, it is wise to find out why?