Questions Buyers Ask (Part 2)
According to Realtor.com, there are eight common buyer questions. We will address questions 4 and 5 today.
1. What do you think the seller will accept as a fair price?
By checking available metrics, an experience agent will see what homes are selling for in relation to their originally listed price and their current listed price. That data is presented as part of the offer made to the listing agent. This accompanying information will make it easier for the agent to present the offer to the seller.
Reality: It is up to the seller to accept the offer on the terms presented. An experienced agent will make sure that all are in place to posture the buyer in the strongest position possible prior to the formal offer.
The price may not be the most important factor. Asking the listing agent (1) the best time for the seller to close (2) what is the most important issue to the seller (3) is the seller excluding any items not listed in the MLS — are helpful before writing and presenting the offer.
Most offers today are submitted digitally and there is no “human” factor. Some agents request the buyers to write a letter to the sellers as to why the buyers want the home; however, the sellers can chose to ignore it and never read it. If push came to shove in a multiple-offer situation, letter writing might push the decision in your direction.
How do I know if the property is a good deal?
Any experienced agent will run a comparative market analysis prior to drawing up an offer for his buyer.
Given the fact that you, the buyer, have been looking at homes in a specific price range as designated by your lender’s prequalification letter, will give you an idea of value. Price per square foot, upgrades, updates, pool, lakefront, and community amenities are also factors of value.
An experienced agent also looks at RESALE. “If my buyer had to turn around and sell this home in two years, what might affect his resale value?”
A home built close to a busy, noisy highway may be a factor to consider. What may not matter to some — may matter to others.
The pros and cons of purchasing a particular home and the resale thereof need to be discussed prior to writing up an offer. Chances are – the selling agent today becomes the listing agent tomorrow. The last thing the agent wants to hear is, “you should have told me that that may become an issue.”
Real Estate agents are not fortune tellers. However, they are aware of open and obvious considerations of a resale.
Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).
In a Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.
If you are a sitting-on-the-fence buyer, these facts should convince you to get off the fence NOW.