HOW DO I KNOW HOW MUCH TO OFFER ON A LISTING?

Todays question of the day is: "There is a home i am interested in making an offer on, i know they only paid $100,000 8 years ago, they have not made any improvements, should i offer them $100,000 now ofr this house?"

You should not be looking at what someone paid for a property when calculating what you want to offer. Just as well, you should not be basing your offer on any percentage off of their asking price as you do not know if that asking price is what that home is worth.

The only factor that really matters is what it is worth in todays market in the condition it is currently in. You need to assess what the house is worth in todays market.  If you are experienced you can do it yourself or you can simply have an agent complete a broker price opinion. Once you know what the house is worth in todays market, you can make an educated offer.

if you are not experienced, You may want to hire a buyer broker, you can usually do so at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing.

Blog Updated Sept. 13, 2010

Blog Written by:

Scott Godzyk
Owner/Broker

Godzyk Realty Group

Manchester NH

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September 13 2010 - Manchester
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Other considerations.....how bad do you want the property, are there multiple offers and how long has it been on the market.

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September 13 2010
While you may not want to use the price paid by the current sellers to determine your offer price, it is information that is very necessary in the negotiation process.  If a seller purchased a property 8 years ago for $100,000 and has put no improvements into it, they should have some wiggle room on what they can accept in terms of an offer in the $100,000 or more range. If the purchase was just a year ago for $100,000 then chances are pretty likely they are in a very tight situation and they aren't going have any flexibility in negotiating an offer in the $100,000 range.  Again, not what I want to use to determine my offer price, but very essential in determining what might have a better chance of being accepted.
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September 13 2010
Looking at homes sold similar in size and condtion withing half a mile
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September 14 2010
 
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