WHAT HAPPENS IF MY OFFER IS LESS THAN THE ASKING PRICE OF THE HOME?
In the real estate industry, just like any other market, you’re are at liberty to offer above, below, or the exact asking price by the home seller. But, it is important that you study the market situation and seek advice from qualified realtors in your desired locality before presenting your offer. These precautions will help you to make informed decisions that will give you an edge in your negotiations on the transaction.
The offer you’re going to make will largely depend on how eagerly you want the property and the level of competitions surrounding your choice of a home. If you make an offer that is below the asking price, the seller has three options. They can accept your lower offer, counter your offer, or reject your offer outright. It is important to keep in mind that there may be other buyers who are interested in the same home. If those buyers happen to write an offer at the same time you do, the seller will have multiple offers to compare. Usually, there are many aspects to consider for each offer, but ultimately, the seller will accept the offer that is the best and most complete. In an active real estate market, homes typically sell at or near the list price. In hot markets, there are usually multiple buyers competing for the same home, which can sometimes drive up the final sales price beyond the original listing price. My job as a real estate professional is to help you plan a strategy based on current the real estate market conditions in the various cities in Coachella Valley.
Although you’re free to offer below the asking price, offering the list price can, however, give you an edge in some ways. Here are a few reasons why you should offer the asking price to the seller:
- It enables you to gain the seller’s cooperation
If you agreed to pay the list price, the seller might overlook other factors inherent in the purchase contract that might equally be as important as price. The seller may willingly agree to pay for inspections or reports if you pay list price.
- It gives you competitive advantage
Offering the list price locks you out of the competition in the event of multiple offers. Your offer will definitely stand a better chance of acceptance where another buyer might be trying to negotiate.
- It gives you control over repair negotiations.
If you accept the list price, the seller will be more receptive to negotiating the cost of a repair. The seller will not find it difficult to throw back a little of the cash in your direction by putting things in order for you.
- You stand a chance to get what you really want.
If you really like the home, it environment, and you’ve also found the price to be attractive and acceptable to you, don’t hesitate to offer the list price. If you’re not reasonable with your negotiation, you might end up losing the home. Hence, before you offer less than the asking price, always ask yourself if it really worth losing the home over a few thousand dollars that may not be significant in the long run.
If you live in any of the cities in Coachella Valley and you’re interested in buying a home in the neighborhood, you can contact me for a most reliable professional real estate advice you can find on the market.
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