Tender, Set Date of Sale, Auction, Deadline Sale, Offers Over……. What happened to the good old-fashioned Asking Price? Well, it’s just the sign of a seller’s market, however frustrating it may be. It happens everytime in a hot real estate market. It can be very difficult for buyers trying to determine what offer to put in for a property without a guide price.
As a Real Estate Agent, I frequently get asked ‘can you tell me how much the owners will sell the property for’, but in the current market, it is hard question to answer. What buyers are paying can quite often be above the owner’s expectations.
If a price is put on the property and it initially sits too high for the market, then they won’t be any interest, and if the owners set a price too low then they under-price their biggest asset and they potentially won’t have enough to offer on their next property. The market is just moving fast!
But for some Kiwi’s, the ‘No Price” process doesn’t sit that well, as it seems unnatural to put in your highest offer first, without the chance to negotiate. It is just not what we are used to. If you knew you might not get it, then you may have put in more…. but would you feel comfortable offering that to start with? It’s a difficult question and a hard one to come to terms with if you do miss out. So how to you determine the level of that ever-important offer?
Be up to date with the market
Keep an eye on similar properties so you have your finger on the pulse and can make decisions quickly. Generally, the buyers who have the best touch on price, are those who have made offers before and missed out, so get ahead with your research and create that advantage.
Obviously Rateable Values (RV’s) come into account but often they are several years out of date so can’t be solely relied upon – however recent sales in the area and comparisons to the sale price over the RV’s make for a good guide. Ask the real estate agent you are dealing with for a list of current comparative sales.
Your bank manager
They will have a price range reflective of the current market, different from the RV, that they base their mortgage offers on. However wide these values might be, they are still a good tool, although do tend to be out of date in a fast moving market.
Know what the interest is like – go to the open homes and those of similar properties, see how fast things are selling, and know how quick you must act. Often offers come in before the deadline date advertised and the sale is made then and there, without waiting for the advertised date. So, keep in touch with the agent and be ready to make an offer, and do your research ahead of time so you can reduce your conditions.
Tell the agent to make sure they advise you if another offer comes in. (If they don’t they can be held accountable!) Don’t let pride get in the way – think about how you’d feel if you missed out by $5,000. If in 7 years time you looked back on this home you love and had paid $415,000 instead of $410,000, would it really bother you? The interest rate you’re paying is likely to have more of an impact.
Also, provide an uneven offer, sometimes that extra $350 can make all the difference and seem as though you really have thought about every dollar you can afford.
But don’t forget the big picture (what you can actually afford!) when you establish your maximum price though, not just the short-term convenience or those pulling heart strings. At the end of the day, the only thing you can do is put your best foot forward, and ensure your conditions are as enticing as possible – without putting yourself at risk.
About the Author: The above article on What’s the Price was written and provided by Brent Palmer, a local leader in the field of Richmond and Nelson Real Estate sales, marketing, advanced technology for home selling, and social media.
You can contact Brent Palmer here, or at 027 544 9921. He has helped many people buy and sell homes in the Nelson, Stoke and Richmond areas for years, and would love the opportunity to help you as well.
Thinking of selling your home? I have a real passion for helping people sell their homes in our Nelson and Tasman Region, as well as the marketing, social media & advanced technology for home selling that goes along with it. I’d love to have the opportunity to sit down with you discuss how we can work together to get you the best price.
I help people buy and sell real estate in the following Nelson and Tasman towns & neighbourhoods: Wakefield, Brightwater, Hope, Appleby, Redwood Valley, Mapua, Stoke, Tahunanui, Atawhai and of course, Richmond and Nelson City.
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