It's A Buyer's Market. Shouldn't I Offer Less?
One question that I have heard from every buyer that I have ever had (and, I suspect, that I will hear from future buyers as well) is "the seller is asking for X price, shouldn't I offer less?" That question often is accompanied by the assertion that "it is a buyer's market".
First of all, let's define what a "buyer's market" is. A buyer's market exists when, at the current rate of sales (usually #homes sold/6-12 months), it would take more than 6 months to get rid of all the current homes on the market for sale. Example: if 54 homes were sold in, say, Wolcott CT over the last 6 months, and there are currently 84 homes on the market, then 54/6 = 9 homes per month sold; that would mean with 84 homes, it would take 84/9 = 9.33 months to sell all of the homes currently on the market.
That fact alone is NOT enough to justify offering less than list price. As a matter of fact, there are several reasons that would justify a less than list price offer:
1. Does the house need work? In other words, are there repairs that the seller cannot or will not negotiate to fix?
2. Is the house obsolete? Are there items in the house that are so outdated that it would cost thousands of dollars to replace them?
3. What is the overall condition of the house? Are the windows updated, does the house need a new roof within the next 2-5 years, does it have hardwood floors that need to be refurbished or carpet that needs to be replaced...
And the list can go on and on...
One very simple way to answer that question is to have your real estate agent perform a buyer CMA (comparative market analysis), in which all of the known facts about the house you want to make an offer on are weighed against similar houses that have sold within the last 6 months.
Ultimately, only you as the buyer can make the decision on what to offer for a property that you want to buy. But do so armed with as much information as possible, not just on an assumption which may or not be true...
Courtesy of William James Walton, Sr. , Realtor, WEICHERT, REALTORS® - Briotti Group
Serving northern New Haven and southeastern Litchfield Counties (Waterbury, Wolcott, Prospect, Naugatuck, Middlebury, Southbury, Watertown, Thomaston and Plymouth)
Call William James Walton, Sr. Real Estate Agent with WEICHERT, REALTORS® - Briotti Group (203) 558-7463 for help with your real estate needs -buying or selling - in Waterbury, Watertown, Wolcott, Middlebury, Southbury, Prospect, Naugatuck, Plymouth and Thomaston