Your offer should consider the market value of the home — not just the list price. It will use that number as the basis for everything else – so it’s up to you to choose a number that isn’t too pie-in-the-sky overly optimistic. In this case it is best seen as a platform from which to negotiate. Learn how your comment data is processed. And your agent can also help you understand the market and whether it’s moved up or down from those recent sales. And keep in mind, a lot of a property’s value is in people’s perceptions. However, if you can look at the transaction objectively, you give yourself a better chance at striking a better deal. In a hot real estate market, there are often multiple offers for homes. If you’re in a balanced market or a seller’s market, you might make a list-price offer. Calculations - 100/month. And for whatever reason — maybe it’s next door to your mom or best friend — you really care about buying this specific home, and you don’t expect a replacement to come along any time soon… or ever. You begin with the Property Fair Market Value (FMV), and then you can test a variety of options to make the best possible deal. The fact is – I have a business model that I need to stick with, and if a seller doesn’t agree with the price that I NEED to have on their property – there isn’t much more to discuss, I simply walk away. If we feel like your offer is going to get rejected and you’re OK with that, we’re OK with that,” he says. You can read this article about how to determine what they want and why the vendor is selling. Circumstances have changed and I have to sell. How to Ask the Right Questions of Your Prospects, http://real-estate-rehab.blogspot.com/2013/12/how-much-to-offer-when-submitting-real.html, https://retipster.com/howtowriterealestateads, The #1 most desirable property in the neighborhood. How to calculate the true price guide The underlying value of a property is the land. But I am one of the few in this area that hasn’t built. Our goal is always to provide our readers with the most up-to-date and relevant content so that we can continue to empower others! I tried downloading, but I received a “page not available” message. Or, you might come in with a low offer if you’re simply ambivalent about the house — and would only want to score the keys if you could get it at a steal.
Let's be honest - sometimes the best offer calculator is the one that is easy to use and doesn't require us to even know what the offer formula is in the first place!
I have mountain property that I bought WAY back when. What about the Direct mail campaign, list costs, legal docs/accountant, etc.? A new opportunity arises to purchase a property, and you want to try out different calculations quickly to see what the ideal offer might be. This is NOT the time to simply “wing it” and guess on the numbers without doing some research. It may seem like a $200,000 offer and a $205,000 offer where the seller pays $5,000 in closing costs net out as the same thing.