What to consider before making the offer:

COMPARABLES
Is it comparable to recent neighborhood sales?
We will use a Comparative Market Analysis to look at:
  • Similar sized homes (beds/baths, square footage).
  • Properties currently on the market (active, pending, sold).
  • Active days on market.
  • Listing price & sales price.
  • Located within a specific radius to the considered home.
This will help provide some calculations as to the high and low sales price, average sales price, and price per square foot.
SPECIFIC KNOWLEDGE
  • Days on Market (DOM) is a signal that there may be an opportunity for you to purchase the property at or below the list price.
If, for example, the average DOM is 40 and the listing has been on the market for 150 days, you might make a lower offer knowing your offer might be the first thing that has come to them in a while, so it could be worth a shot to make a lower offer!
  • Seller's Motivation, sometimes money isn't the most important part of the deal. 
For example, if the seller has already purchased another house and is presently making dual mortgage payments, a $300,000 offer that closes in 15 days might be much more attractive than a $320,000 offer that closes in 35 days!
  • ​Competition, the number of active comparables will indicate how much competition the Seller has.
The more active comps there are in the neighborhood, means the Seller will be a little more keen to receive an offer, and more considerable to accept your offer around or below the list price.
MARKET TRENDS
It's important to consider the overall Real Estate market trends in the local area of your soon to be home:
  • Is it a Buyer's Market or Seller's Market?
  • Competition? Is the current supply of homes on the market plentiful or scarce compared to normal?
  • How do the seasons affect the current the market?
  • Are interest rates rising?
  • Are homes selling below the average list price?
In order to get a more accurate idea of what's going on in your market right now, and how that might affect the price and terms of your offer, ask Bill for a CMA today!
YOUR COMPETITION
The most important thing to know when making your final decision as to how much to offer on a property is whether the Seller will be entertaining multiple offers.
  1. Have you Lender's approval ready.
  2. Make your first offer, your best offer!
  3. What can you offer that others cannot?
​Can you offer to pay all cash? Can you offer a quicker closing? Can you offer a lease back? Can you offer a more generous earnest money? Whatever you are willing to offer the seller to earn their trust will make your offer stand out of the competition.

DROP US EMAIL

Bill@Kempsells.com
Kemps.Assistant@gmail.com
6760 Corporate Drive, Suite 300
Colorado Springs, CO 80919

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Office: 719.536.4449
Cell: 719.499.6125