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Deciding How Much to Offer

Determining an Offer Price

How do you decide how much to offer on a home you like? There’s no easy answer, because it depends on a lot of factors:

  • What is the overall market like?
  • How long has the home been on the market?
  • Has there been a recent price reduction?
  • Are there other offers coming in?
  • Do you have a contingency to sell another home?
  • What terms (beside money) can you offer the seller?

In a competitive market — where it’s not uncommon for houses to sell (or have multiple offers) in the first several days on market — you may be competing with other buyers. In such a situation, offers below asking price are generally rejected or ignored.

Comparable Sales

Each property and situation is unique, and unless you’re competing with other buyers, it’s helpful to consider how much similar homes have recently sold for (known as “comparable sales”), as well as neighboring homes currently on the market or under contract. A good starting point is the “price per square footage” for similar sized homes in that specific neighborhood, and then consider these key factors when comparing properties:

  • Location
  • Outdoor space and View
  • Number of bedrooms and baths
  • Updates and renovations (kitchen, baths, windows, flooring)
  • Lot size
  • Age of home
  • Age of roof and mechanicals (HVAC)

Aside from the “data,” many buyers feel compelled to negotiate regardless — after all, who doesn’t want a great deal? However, coming in with a low offer, at least without justification, runs the risk of insulting the seller and can hurt your chances of getting the home at all. It also suggests to the seller that you may not be a serious buyer, or that you’ll be difficult to negotiate with regarding inspections and repairs. Low offers also give the seller and listing agent an opportunity to leverage your offer by fielding other, higher offers.

Common Mistakes

A common mistake is making an offer based on the upgrades and improvements the Buyer plans for the home. In most cases, however, updates and upgrades (or lack thereof) are generally factored into the price of the home.

Another common mistake is assuming the seller will counter if they don’t like your offer. Keep in mind, sellers are not obligated to respond to offers, and in a “seller’s market” they will often have multiple or competing offers to choose from. Sellers usually accept the best offer, and reject all others. They do not have to respond, or give you a chance to revise or improve your offer.

Ultimately, it’s your decision on how much you offer, and how much you’re willing to pay in order to get the home. I’ll do everything I can to help you understand the market and value of the homes you’re considering. I’ll give you my perspective and advice as your Buyer’s Agent, which should put you in good position to make an offer a seller will consider and hopefully accept.

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TESTIMONIALS

"Russ made us feel comfortable right away. So very patient and if we called with a question, he answered it and put me at ease. What an absolute wonderful guy. Worked super hard at getting closing complete while we were here. Love, love, love the man. Will not use anyone else. "
- K.S., Grand Rapids MN
"Russ did a terrific job finding the perfect house for us. If you’re in the market for a home, Russ is the man to see. We couldn’t be happier and highly recommend, Russ. What a great guy!"
- J.P., Woodbury MN
"As an out-of-state buyer, I needed to find the right person to be my local contact. And Russ was that person. He knows the area and had a lot of patience to show me around. He also did not push his opinion but was willing to give it to me when asked. The end result? With Russ’s help I have purchased the right home in the right area for the right price! I never could have done that without the expertise Russ brings to the process."
- D.H., Mogadore OH
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Russ Fortuno, Associate Broker

I'm a Southern Arizona native and year-round Green Valley resident. Whether you’re buying or selling a home in the Green Valley or Sahuarita area, you’ll experience unsurpassed service and professionalism at all stages of your real estate transaction. I welcome the opportunity to assist in your next home sale or purchase.
Meet Russ

Tierra Antigua Realty

18745 S. I-19 Frontage Rd., Ste. A105
Green Valley, AZ 85614
(520) 333-0446
Contact Russ

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