You’d love to own that house, but how much should you offer for it?
09/12/2014 | Author: Jaime Lee
You found the home of your dreams and everything feels just right. You want to ask your Texas REALTOR® “Where do I sign?” But before you submit an offer on the property, you have to decide how much that offer should be.
So, how do you arrive at a number? Here's where it’s in your best interest to work with a Texas REALTOR® … and it’s why so many people do. In fact, a 2013 consumer survey found that the top three things buyers want from their real estate agent are help finding the right home to purchase, help with price negotiations, and help negotiating the terms of sale.
When you’re ready to submit an offer, your Texas REALTOR® will use his or her resources and knowledge of the market to find the selling prices for comparable homes in the area that sold recently. This means he or she will look for properties nearby that have features similar to the one you’re interested in—square footage and number of bedrooms, for instance—to determine its market value. This number may differ from the asking price.
Using the sale prices for comparable properties and other factors that can affect the property’s value, your Texas REALTOR® will help you present a strong offer to the sellers that gets you one step closer to the closing table.
I have a mathematical background and have worked on some demand forecasting. Here I am visiting this site as a home buyer.
I have found this strategy not working for me and to some extent not a good idea in some markets like current and I am trying to get your experience and why you think this is a good strategy.
The strategy here gives highest value to Demand-Supply instead of intrinsic value of a house. Right now, investors or people with cash are moving from saturated states like CA to TX, and lot of them are ready to over pay due to bidding wars or to make sure they get the property. This is creating a bubble like scenario in the market.
This will create too much barrier for first time home buyers.
With this strategy of pricing, realtors will be big part in creating this bubble, and as soon as investors move out of the market either because of intrest rate hike or prices increased due to them. This bubble will burst, and realtors will play the catch-up game again.
In general I am in agreement with you. However, I always look at making adjustments for lot size, number of full and baths as well as out-buildings which have interest and value in the more rural area like out counties. Most area homes will have at least three bedrooms and I always advise my buyers to purchase three so they will have an easier time selling. Anything less than three bedrooms, two baths and a two car garage will be harder to sell manana.
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