www.TomTezak.com
The big question these days is: “How low should I write my offer?” In a stabilizing market, we all wonder “How low do I go?” The answer differs by situation, since every seller is unique. Some take it personally and are offended by a low offer while others see it as business, not personal. It’s best to start by asking the question: “How motivated is this seller?” The answer should determine your offer.
First, review the market data your Realtor® gathers. You need to know how long the property has been on the market and the listing history – has it been listed before and does the current listing reflect today’s market value? Look at the pricing history. Have they dropped the price and if so, how many times, by how much and how often? And of course, compare the property to what else is on the market and see if it is priced fairly based on what else is available. Your Realtor® can provide you with the sales data including when the house was previously sold and the price. In Hawaii, that information is public and available through a data reporting service professional Realtors subscribe to.
Realize that successfully beating up a seller on price doesn’t guarantee you a good deal. If the asking price was inflated from the beginning, your low offer may merely get the price to where it should have been all along. A discount off a high asking price is really no discount. Conversely, sometimes the best deals are when the buyer pays full price. Know the market you are shopping in and when an asking price is low for that market, you’ll be prepared to act. Even at full asking price, the property is a steal.
Sellers need to know that properties entering the market priced fairly will sell at or close to asking price. More importantly for sellers in a changing market, it will sell quickly. Nothing is worse than watching your property languish on the market for weeks and month on end. Sellers should keep this in mind when pricing their property. Trust in a professional, full-time Realtor® that services your market area.
And buyers, if a property you really want pops up at a great price, don’t be foolish and try to lowball. A savvy buyer, knowing a deal when they see one, will swoop in and pay for it. On the other hand, if the listing has been around for a while and you are willing to risk alienating the seller, why not try? Recently, we’ve seen accepted offers coming in 10% or more below the asking price.
But if you choose to go low, it’s a good idea to have more than one property you like in mind. If you alienate a seller with a low offer on a property they know you really want, they may make you pay more in the end. “Low-balling” can sometimes put you in a precarious position. Be aware and negotiate wisely. Having a skilled, professional Realtor ® who understands the art of negotiating on your side makes all the difference in the world.
About the Author: Tom Tezak R (S) is a licensed Maui REALTOR® Salesperson with Coldwell Banker Island Properties at the Shops of Wailea. Tom has consistently been a Top Producing agent for the past 15 years in the real estate industry. Tom can be contacted directly at 808.879.4663 or Toll Free 866.752.4663. Email or visit him on the web at www.TomTezak.com to discuss any real estate questions you may have.
Tom Tezak R (S)
Phone: 808.879.4663
Toll Free 866.752.4663
Website: www.TomTezak.com
Statements or expressions of opinion appearing herein are those of the authors and not necessarily the views or opinions of MAUI, A Property Portfolio LLC, its publishers or staff. MAUI, A Property Portfolio LLC, its publishers and staff disclaim any liability arising from reliance upon any information or opinions contained herein.
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