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Written by Tamara Schmitt
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Friday, 25 November 2005 |
A buyer should understand with confidence what comparable properties in the neighborhood are selling for. Assuming your agent is a busy local player, he or she should know very well what a fair price is for the house of your choice. Ask your agent for statistics of list price versus sales price for the neighborhood. Compare the price and quality of other homes you've seen with the one you wish to purchase.
Experts estimate that most homes sell for about 6 percent less than asking price, but that's just an average and it varies widely from market to market. While no buyer should be afraid to offer below asking price, it's not realistic to expect a seller to go below 5 percent of the list price unless the property has been on the market for a long time and the buyer has set very few contingencies.
Certain indicators can clue you in to the seller's motivation to sell quickly. Find out how long the house has been on the market. Has the price already been reduced? If yes, and more than once, you may be dealing with a highly motivated seller. When did the seller originally buy the home and for how much? If you can't ask directly what their equity is, your agent may be able to come up with a ballpark estimate, not to mention other valuable information such as whether the seller is going through a job transfer, or has already purchased a new home. If either is true, the seller is unlikely to have time and money to wait for a buyer who will meet the asking price. |
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Last Updated ( Tuesday, 22 August 2006 )
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