In summary, most of what is here is theory, (like economics) but if you are dealing with a seller that has a personal stake in the offer, be more thoughtful, because of emotions involved. A bank is less likely to take your low offer negatively. I would be aggressive with a very good offer if the property is priced right anyway. Your agent can complete a market analysis to know where the list price is. Know that if you delay your decision, you give other buyers and agents the opportunity to show and sell it before you decide….or a second or third offer comes in. It is common practice for banks to hold your offer, especially in the beginning of a listing or a new price reduction. Most banks will reduce every 30 days….so the end of the 30 days is typically a good time to try an offer.
Finally, I think it would be well for me to eliminate the myths when buying. The following statements are true.
1-A seller is NOT obligated to give the first offer preference. The seller may negotiate any way they see fit.
2-Sellers have the right to respond to the offer in many fashions and are NOT required to counter the offer.
3-Some buyers will make an aggressive over-priced offer knowing it is a great deal!
4-The listing agent has a responsibility to present any offer, and to reply timely-even if it is just to say…..we are holding the offer. The buyer basically has been refused, but eventually …they may receive a counter or acceptance if nothing comes better. (this is mostly for REO properties) The personal seller will generally reply with a counter or acceptance.
5-I like to send the low offer with a polite justification for the amount.
6-A good way to write an unreasonable offer and much frustration is to bring your parents in late in the process. Let your parents view all the houses so they will understand your conclusion. Sticker shock and unrealistic expectations will occur without the comparison shopping.
7-Some areas and price ranges will be affected differently. The NAR commercials stating that the national news cannot be listened to as accurate because real estate trends are LOCAL! Trust your agent and look at all the data!!
HAPPY HUNTING and NEGOTIATING!!! Good LUCK
