Making the Offer- How to SELECT PRICING FOR YOUR HOME OFFER: You always decide how much to pay with Realtor® guidance

Whether you call home Brooklyn Park, Tinley Park, Oak Park or any park in between Realtors® Report Necessary Facts Guiding You to Answers- You ALWAYS Decide the Price You’re Willing to Offer & Pay. Various state licensing and regulatory agencies instruct their professional real estate licensees not to tell a buyer how much to offer and nowhere in the National Association of Realtors’ (NAR) Ethical Code does it suggest that Realtors® determine a price for a buyer’s potential offer.  It is in the sole discretion of the buyer(s) to establish an acceptable offer price guided by the experiential advice and facts presented by your Realtor®.

    1. Buyer’s Own Their Decision- If you go in too low, you may not even receive a seller’s response and if you go in too high, you may receive an immediate acceptance- In neither case should any client be able to put any blame on their agent. In the end, the buyer and not the agent will be responsible for the maintenance and debt service for potentially dozens of years so the buyer needs to be 100% sure that the purchase suits them sufficiently for the magnitude of commitment the property purchase is.
    2. Always try to find out “Why is the seller moving on?- Either
      from your Realtor® or under your own inquisition. If the reason for the sale isn’t readily apparent, checking the resources below may give factual clues and with those the pigment in the paint of the picture you need to frame with an accepted offer.
    3. How Much Did the Seller Pay and What are the trust deed mortgage balance(s)?- Start here to determine how much equity or indebtedness any particular property owner has taken on. If the owner has a significantly higher than market value encumbrance (trust deed mortgage balance) on the property while that property sits vacant, it is probably a second home that the buyer is paying for out of pocket. If the seller has tons of equity, they can afford to hold out for their price generally but in times of credit drought (like these at present) sellers are much more receptive to carrying back paper
      (owner-financing), a tremendous find where discovered.
    4.  What Are the “Comps”? - The comparable sales of an area help establish the sales price of homes in any given neighborhood. All comps must include property address, year of construction or manufacture, total square footage, lot size, total bedrooms and baths as well as sales price. Try only to use those homes
      that most closely match the property in square footage, number of bedrooms, baths amenities and condition. Ask your Realtor® to retrieve six months of comps divided (trifurcated) by: #1. Active Listings; #2. Pending Listings; and #3. Sold Listings. Ask your agent to call the listing agents on the Pending Listing sales to discover the accepted offer price, (those listing agents aren’t obligated to tell your agent but if he or she is one smooth talker they’ll at least get a pretty goof clue for you.) Be sure to personally check out the comparable active listings because they are the only homes available for buyers to look at, helping to establish what your desired property is worth.


  1. Analyze list price vs. actual sales price ratios- Make sure your Realtor® analyzes the calculated differences with you, breaking down those averages yet agains by the cost per square foot. Seek your Realtor’s® guidance to adjust for the fact that smaller homes cost more per square foot and larger homes less per square foot as driven by location and land value. Larger homes tend to be built further removed from any city’s center where land is less expensive than “in town” locations with more expensive dirt. Don’t exclusively user square footage pricing, as its calculations can be misleading under various circumstances(e.g. appreciation ceilings on larger homes and land not sub-divisible.)
  2. Days On Market (DOM)- Find out how stale listings are as noted by the DOM number on the MLS listing and inquire as to anything about the home’s history or latent property conditions you need to know about before writing an offer.
  3. Is it Buyer’s Market, a Seller’s Market or Neither?- In a
    buyer’s market little competition for homes means offer receptivity and seller concessions. In a seller’s market it is not uncommon to see multiple offers on the same piece of real estate at or above listing price wherein only the most polished and strong in appearance offers receive acceptance.
  4. Please Visit the Blog Entry Entitled20 Questions Every Buyer Should Ask Before Writing an Offer to Purchase Residential
    or Commercial Real Estate.

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