What Price Should A Buyer offer On A Honolulu Home?
May 29th, 2008 categories: Honolulu Real Estate 101, Negotiating
This picture was taken this past weekend during a visit to Hanalei, on Kauai. The fish was interviewed and then released to his family. No fish was harmed in the making of this blog.
Buyers often ask, “What price should we offer for the property?” It seems many are looking for a rule of thumb concerning how far below the list price they should offer. There is no certain answer to this simple query. The price to be offered can be driven by many things and what follows is a list of 28 important questions to weigh when deciding on an offering price.
1. How long has it been on the market?
2. How does the listing price compare to similar homes that have recently sold?
3. How does the location compare to recent sales?
4. How does the condition compare to recent sales?
5. What about amenities compared to recent sales?
6. Did any of the recent sales include seller credits for repairs or closing costs?
7. How long is the buyer planning on living in the property?
8. Does a buyer have a company buy out program, when it comes time to sell the home?
9. What is the general direction of the market?
10. How many comparable homes are on the market now?
11. How long have those homes been on the market?
12. How emotionally involved in the home is the buyer?
13. Will the buyer regret losing the home if the sale cannot be secured?
14. How quickly can the buyer close the sale?
15. How much of a down payment is the buyer making?
16. Does the buyer need seller credits for closing costs?
17. How large is the seller’s mortgage?
18. Why is the seller selling?
19. How soon does the seller want to move?
20. Does the seller need a rent back or a long close of escrow?
21. Is there a tenant in the property?
22. How long is the tenant’s lease?
23. Are the any tax issues for the buyer or seller?
24. Does the seller currently have any written offers that they are considering?
25. How many offers have been made on the property?
26. Why didn’t the seller take any of the offers that were made?
27. When did the seller last receive a written offer?
28. Is the seller willing to finance any portion of the purchase?
As you can see, an offering price can be more complicated than just picking a percentage below the list price. In future posts, I will ramble at length regarding a number of these questions.
Hi,
Great Post, there are so many variables and you covered most of them.
All the best!
Nice fish!!!!!!!!!!!!!!!!