Mastering the Art of the Offer on Homes That Have Been Sitting
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Imagine stumbling upon a charming house that’s been on the market for several months. As you stand on the threshold, you might feel a rush of possibilities. But what should you actually offer? Walking away or tossing out a lowball figure might seem like the default moves, but there’s a more strategic approach to unlocking the potential of a property that’s been waiting for the right buyer.
Understanding True Value
The first step in making a strategic offer is identifying what the home is actually worth. The market list price is often just a starting point, and may not reflect the property's true market value. To make an informed decision, it’s crucial to conduct a comprehensive review of comparable sales, or "comps," which includes similar properties that have recently sold in the area.
Value first, always. Your offer should be anchored in the property's true market value, not just the seller's asking price.
— from the video
Reading the Seller's Situation
Once you have a firm grasp of the home’s value, the next move is understanding the seller's motivation. Is the property vacant, indicating possible financial strain from maintaining it? Has there been a history of price reductions? These clues can help you gauge how flexible the seller might be.
Check the listing history for price cuts.
Note how long the property has been on the market.
Identify if the home is vacant or occupied.
Understand the reason for selling – relocation, divorce, etc.
When it comes to making an offer, data is your ally. Attach the comps to your offer to substantiate your proposal. This transforms your offer from a guess to a well-supported argument. A strategic approach might be to start slightly below the calculated value, providing room for negotiation.
Beyond price, consider other terms that could appeal to the seller. These might include offering a flexible closing date or asking for closing cost credits, which could be more advantageous for both parties.
Presenting Your Offer
Presentation is key. A clean, straightforward offer accompanied by a solid pre-approval can stand out. It provides the seller with certainty, which is highly valuable, especially if they have experienced previous deal fall-throughs.
Sellers get mad at disrespect, not evidence. So, make your case with data and keep the tone friendly.
— from the video
Patience Pays Off
Even if your initial offer isn’t accepted, all is not lost. By leaving the offer on the table, you maintain a position of strength. Over time, as the property continues to sit, your offer may become more appealing to the seller.
When approaching a property that’s been overlooked, remember the power of a well-informed offer. Evaluate the true value, understand the seller's situation, and structure your negotiation to include more than just price. With patience and respect, you may find that a seemingly stagnant opportunity becomes the perfect match.
