There was a question – rather, a series of questions – on Trulia Voices that has stuck with me over the last day or so. Combining and shortening the multi-question thread, a buyer had made an offer on a bank-owned home, the offer had been rejected and now the buyer was trying to figure out what they now should offer to purchase this home.
Putting aside for a moment the fact this buyer has an agent to whom they ought to be turning for advice (why hire an agent if you don’t value their experience and opinion?), the scene struck me as a contest on the Price is Right. How much is that bottle of fabric softened? Oh, gee, I don’t know … (turning to the audience, where people are jumping up and down shouting out figures) … $3.23? Is that good?
Without knowing where the home’s located and the state of that market, there’s no way to answer the question “what should I offer?” Determine what the current fair market value of the home is and work down from there.
Or if you’re not willing to pay that amount, decide what the maximum you’re willing to pay is – your best and final offer – and write an offer at that price. No need to leave room for negotiation at this price since you’ve already decided you won’t spend a bit more.
Either way, it’s a far more effective pricing strategy than looking at the mewling mob and hoping to hear a coherent answer.
[tags]Phoenix real estate, Trulia voices, real estate negotiation[/tags]