What Affects the Offer Price
- Property Condition
You should rate the overall condition of the property and compare it to other properties in the area. On the inside, you should look at the floors, ceilings, walls, doors, and windows. The plumbing and electricity should be in good working order, as well as the mechanicals, such as the furnace and water heater. The fixtures should be in good working order and not damaged. Also look at the front and back yards to make sure they look like they are in reasonable shape.
- Home Improvements
The home improvements that are important are not the cosmetic changes like painting ad window coverings, but the major chnages to house. Look for improvements in the kitchens like new cabinets, expensive flooring, and new appliances. Look also for changes in the bathrooms.
- Market Conditions
During a seller's market, or a hot market, houses generally go quickly, some even on the same day they are listed, depending on how hot the market is in an area. Often times homes in this kind of market will sell for above the asking price. During a buyer's market, or a slow market, houses can sit on the market for many months, and even become reduced in price. In this kind of market a buyer can offer below the seller's price and still possbily get the home. Transition markets, another kind of market, can be problematic because a house bought on the high end of a seller's market can lose value for a couple of years when the enconomy suddenly slows down; this happened when people bought homes at the high end of a seller's market in the late eighties found the value of their homes decreased in the early ninties when the economy was in a slight depression.
- Seller Motivation
If a seller has already bought their new home, they may be more inclined to negotiate the price below the listing price. Having to pay two mortgages at once can be stressful for a seller. But be careful, often times when an ad says "motivated seller" this may be a ruse to generate phone leads and does not corespond to a willingness to make sale.
Last Updated: April 9, 2007 All information copyright madison-real-estate.net 2005, Webmaster
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