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Wednesday, March 05, 2014

Home Buyer Tips: What is a reasonable offer?

What constitutes a reasonable offer depends on whether one is the buyer or seller.  This short post addresses the offer from a buyer's perspective.

How much should we offer?  Sometimes prospective buyers ask their real estate agent's opinion.  The expectation is their real estate agent is the local market expert.  And they likely will be the expert if they chose the right real estate agent.

The decision of how much to offer often requires consideration of multiple factors with the primary consideration being completely subjective - how attracted one is to the property/location.

Still it is important for buyers to remain objective

There are considerations like financing.  There are considerations like goals (investment, flip, long term homestead, retirement home, etc.).

And when all of the considerations the final decision should be based on the "comps."

A reasonable offer is one that is supported by the comps.   If there is financing involved the contract price must be supportable by recent sales of similar properties.  If it is a cash transaction, most buyers still want the assurance the property will appraise at the contracted price.

So what is a reasonable offer?  It is one that is acceptable to the buyer, supported by recent comparables, and meets the buyer's objectives.

How a seller responds to this reasonable offer will depend on the seller's motivation and goals and their own definition of a reasonable offer.

Considering selling your Viera, Suntree, Melbourne, or Rockledge, Florida home?  Call me at 321-693-3850 to discuss how I can assist you.  Also, remember to ask for a no obligation comparative market analysis.

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