Many buyers struggle to find the answer. Before you decide on what to offer for a piece of real estate, take these things into consideration. First, do your real estate homework. Today, real estate technology makes this easier and easier. Start with your county’s Property Appraiser Office. Most offer an on-line search which will provide information about the last sale price of the property. Find out what your sellers paid for the property and when. Why? This may give you some added insight into the seller’s motivation. Property owners who seek to sell real estate quickly may be “flipping” the house for investment purposes. Don’t forget that federal tax laws can penalize homeowners who sell their primary home within two years of its purchase.
Take a close look at the recent sales in or near the neighborhood of your targeted house. This information is usually available through your County’s Property Appraiser Office either on-line or through a personal visit. The research can take some time to accomplish. Of course, you can request this from your realtor through a “Comparative Market Analysis”. By converting the average sales price into a “price per square foot” you can estimate a fair market range for your potential real estate. As you do this, remember to take into consideration special features such as lot size, pool, fireplace, recent renovations, etc that might affect the properties market value.
Once you have some ideas of the range of values for your real estate turn your attention to the current real estate market. Like most markets, real estate is largely about supply and demand. How many houses are available similar to your targeted property? If your answer is many, you may have an advantage - a buyer’s market. In this type of real estate market, a buyer can find many similar houses and sellers are usually willing to negotiate on price. If there are few houses available or the real estate of interest to you is unique with few substitutes, the advantage may go to the seller. In this market, if several buyers are interested, sellers can command top real estate dollar for their property – at times even more that its original listed price.
As a buyer you should also try to determine what motivates the owner to sell the property. In tough times, owners can sometimes attempt to sell a property they are no longer able to afford. Pre-foreclosures and “short sells” while unfortunate for the seller can be advantageous to the buyer. At other times, sellers occasionally will have entered into another real estate transaction for a new property and are more anxious to negotiate so the new property can be obtained or to avoid two mortgage payments. At other times, owners seek to sell real estate as they relocate out of town or state. Depending on the circumstances this can also influence their attitudes towards negotiation.
As you consider what real estate offer to make the most important factor is what makes you personally comfortable. If you feel the price is too high, it probably is. Perhaps the strongest safety net for buyers is an appraisal of the property. That’s why mortgage companies require one of their own before they approve your loan. As you realtor, my goal is to help you make the best real estate investment possible for you and your family. If you have questions about this or other real estate topics, call John Carter at (863) 529-7488, any time, any day.
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529-7488
It's the Toughest Real Estate Question ....
W
hat should I offer?
Y
our homework doesn't stop there.
E
valuate the real estate market.
What is a short sell?
In real estate, when the mortgage owed on a property is more than its market value, owners, with the permission of their lender, can sell a property for less than the amount owed to avoid foreclosure.
The property owners avoid blemished credit and the mortgage holder avoids the costs associated with the foreclosure and eviction process.
John Carter is a Coldwell Banker Realtor in Polk County Florida specializing in residential sales.
or call (863) 529-7488
W
hy is this property for sell?
Do your Homework! Visit
D
o what feels right.
