Buyers

Offer Negotiation

When deciding to purchase a property and making an offer on a particular property, there are eight important questions that you should consider. These questions can be divided into “Property Specific” and “Neighborhood Specific.” Let Douglas / Christopher answer these questions for you for each property you are considering.

Property Specific Questions

1. How long has the property been on the market?
   Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.

2. Have there been any price reductions during the listing time period?
   Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.

3. Have there been any other offers on the property?
   Why: It will be helpful to know what offers may have been turned down and for what reasons.

4. What is the motivation of the seller?
   Why: Motivation is the key element in any negotiation. A highly motivated seller will be more willing to make a deal on the property. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiations.

Neighborhood Specific Questions

1. What is the price range of sold properties in the neighborhood?
   Why: This information is important since it will indicate the top and bottom of that specific market.

2. What is the average time on the market for properties in the neighborhood?
   Why: Short market times may indicate a seller's market. If this is the case, you may face competition from other buyers.

3. What is the list price to sale price ratio in the neighborhood?
   Why: This information will indicate a sellers’ past willingness to negotiate and by how much.

4. What is the average sales price per square foot of recently sold properties in the neighborhood?
   Why: This approach to establish value works best in a P.U.D. and/or where there are similar homes, lot sizes and improvements.