Making a Reasonable OfferMarch 19, 2011
In today’s market, both buyers and sellers are very market-educated. They have access to many online databases to research Boston luxury homes. Buyers find listings through MLS searches and often take virtual tours of properties via YouTube (my videos coming soon!), before setting foot in the condo for sale. The online resources are limitless.
With this wealth of information, comes greater awareness on behalf of both parties. Everyone wants the best possible price for a property. Buyers are asking “how low can I offer?”. It’s a legitimate question, since we’re dealing in a buyer’s market right now, but the seller won’t even consider extremely low-ball figures, so the offer has to be reasonable to buyer and seller.
For buyers to make an acceptable offer, they must look at comparable sales in the area and make offers that are in line with the sales data in the market. The sellers should also look at similar data. An exception to this rule, however, is found in economic down cycles. But fortunately, Boston luxury homes have been pretty well insulated from this down cycle and relatively unaffected by recent hard times.
There is yet another exception to the rule that several Boston homes fall under: no comparable sales exist for some highly unique properties, due to the location, level of upgrades, layout, views etc. These unique listings often command an asking price well above all recent sales. For the most part, buyers have a hard time justifying the price. However, there is always a buyer who appreciates the value of that particular property, because it matches ALL of their requirements. Purchasing real estate, especially in a buyers market, is not an exact science. That’s where I come in - to help you navigate your next sell/purchase.
Interested in another aspect of the purchase process? Leave a comment and let me know!