There is more behind every door
Every home buyer tries to figure out what it will take to buy the home that they have decided to make an offer on. Determining the right price, or how much wiggle room there is, is the bottom line here for everyone from the first time buyer to the savvy investor.
If you are sitting at your kitchen table pondering this question, then it is time to consider some subtle nuances that I feel are essential for success. At least in the Northern Virginia real estate market where most sales aren’t foreclosures, having a “global view” will give you a greater opportunity to succeed in your negotiation.
Not every offer gets the house
Doing some homework on the house you want to buy is essential, and it is important you do these things quickly and methodically to help you form a unique negotiating strategy. There are many X-Factors in real estate, so, the more you know about each home you are interested in the better. Some facts a clear, but sometimes you will need to infer or form an opinion of what the seller is hoping to achieve.
Some subtle real estate X-Factors:
- How does the house compare to the competition?
- How long has the home been on the market?
- How long have the sellers owned the home?
- Are there any offers already on the table?
- When do they prefer to move?
- Did you meet the seller?
- Why are they moving?
- Is the house occupied or vacant?
- What is the overall condition of the house?
- Is it owner-occupied or are tenants living there?
- Have they already adjusted the listing or asking price?
Wait, but the comps say this home is worth…
There are always facts that people use to determine values, but facts in real estate sales are only so useful. For example, a seller knows that the market value of her home is $300,000 but prices it at $285,000 looking for a fast offer. It is a nice home with an updated kitchen, two year-old hardwood floors and upgrades that will jump out to any home buyer that has been watching the market. I have seen this type of scenario drive statistics focused clients crazy because that new, under-priced listing just did not make sense.
“Isn’t there supposed to be a negotiation, where I make a low offer?”
“Well, not always.”
“Huh?”
Unless you are buying a new home from a builder (a whole other scenario), it is essential to remember that most folks have never sold a home before or have experience with one, maybe two real estate sales often spread out over decades. The seller may have raised a family there, bought it before they married, or cared for a deceased spouse there. Emotions often come into play for both sellers and for buyers.
So consider more than the cut and dry facts, the assessment, or the Zestimate. More than recent local home-sales data, school information, walk-scores, or location.
And always know that, even when you put together a perfect offer, another eager home buyer may get the house for an unexplainable reason. And that is the real estate X-Factor.
Related articles
- Real Estate News: Home Sales Gains Seen (blogs.wsj.com)
- How to Get Your Home Ready to Sell in 30 Days (dougfrancis.com)
- Yes, it’s your Second Showing (dougfrancis.com)
A few years ago I noticed that real estate sites seem to show the same MLS listings, so I decided to create a distinct real estate blog to share my local insight - if you already live here or are relocating. There are topics based on recent client experiences, buying custom homes, and more learned over the past twenty years. Take a few minutes and read a blog post or two to see if my approach matches your goals. I am a real estate agent with RE/MAX, have lived in Oakton and McLean, and live in Vienna Virginia. My goal is to provide you with intel into today's market, candor, practical advice, ideas to get you moving, some humor, geeky stats, the best coffee shop, some video, and a cool way to search for homes. Helping you understanding the process of making an offer, the sales contract and more will come when we meet. Yes, I live here. It is easy to reach me: 
Great article highlighting the “art” of the offer, or the X-factor. There really are so many different things to consider when making an offer.
Great X-factor list. We should add listen to your Realtor to it.
Liz Benitez´s last [type] ..Ham Florentine Wreath
This is great information – but give it to your buyer BEFORE the heat of battle! If you have prepared them for the offer process and how it should lead to “the buying process”, they will have huge advantage over the people who are forced to learn this stuff during the stressful time of trying to buy their dream home!
I have reviewed your Real Estate Blog. You gave me lots of important Real Estate information. I have enjoyed reading it.
Thanks
Mack
Mack Graham´s last [type] ..It’s World Smile Day today – smile at someone this weekend.