Zillow Advice: Buying Process - how do I know what is a good first offer?

What side of the table are ...

Wed, 17 Jun 2009 20:16:00 GMT

What side of the table are you on? Are you on the seller side or the buyer side?

Aside from the comments made by others... If you are a seller, then evaluate each offer as if it is the only offer you would ever get. Evaluate the market and how it affects your bottom line and decide if it makes financial sense. If your property is priced correctly, it probably bring other offers. If it is priced above market then you would probably not get additional offers and you would end up holding the property until you adjust your price to reflect the market condition. If you are in a declining market, you may end up loosing more money in the long run by waiting for additional offers.

If you are a buyer, your offer should simply be your best offer. In other words it should say "this is what am willing to pay for this property". The offer should match the market, the condition of the property and how badly you want the property. If you want the property then you need to find a win-win situation where you get what you want and the seller gets what he/she wants.

As a final note, regardless whether you are buying or selling, get your agent to gather data to determine market history and try to identify some future trend. Keep in mind that no one has a crystal ball to tell the future, but you can make an educated guess by taking various data and economic factors.

Pay extra attention to NTETS ...

Wed, 17 Jun 2009 12:29:00 GMT

Pay extra attention to NTETS comment about falling values. Comps "won't" tell you more than a snapshot of today's market value. If the forecast and or trends suggest values may drop 10% over the next year, you need to consider this in your offer. Ask you realtor to run comps for the last year or so and compare the older sold prices to the most recent. Then go back two years and determine the rate of decline and whether it has slowed. Any recent stabilization can likely be attributed to tax incentives and Fannie Mae increasing the number of mortgages that can be held at any one time from 4 to 10. Both of these have spiked buying interest over the last few months and may not show a true picture of where the market is or will be next year.

Yes to NTETS comments and ...

Wed, 17 Jun 2009 11:14:00 GMT

Yes to NTETS comments and you should also know the sold comps for that size house in that area. From that starting point then you adjust the price for what you can afford, any repairs or updates you(or your buyers agent can spot) , and ask for sellers concessions. Then the seller either says yes or you begin negotiations.

you should feel good about ...

Wed, 17 Jun 2009 09:55:00 GMT

you should feel good about it. thats the best test. if you cant afford it, if you are worried about the value falling 20%, if you feel like you might be over paying or like you should have done more research or whatever, its a bad offer. if you feel good about the commitment then it is a good offer.