Thursday, November 7, 2013

Home Buyer Tips: How much should you pay for that house?

It is always nice when I hear someone looking at homes for sale in Brevard County, Florida make the statement "I like it."

This is usually followed by something like "What do you think I can get it for?"  or "What do you think they will take for it?"

Regardless of how it is asked my response serves the same purpose - as a reality check.   Shopping for a new home can be exciting.  The key is to not let the emotions or situation (like a multiple bid situation) drive the decisions.

I usually ask prospective buyers what they think it is worth.  This gives me an idea of the degree of seriousness.

Then I proceed with my answer.

I am a data driven person.  Comps and competition is where I start.

Image courtesy of njaj at
The homes that have sold recently will reveal part of the answer.  The circumstances surrounding those transactions will further clarify the data.   And then knowing how many competing active properties and their prices will add more clarity.  That is the data part of the answer.

Another component of the answer is motivation.

Although it can be very useful, rarely is a seller's motivation revealed to the buying public

I can provide the above bits of the pricing puzzle but it is up to the buyer to add the final part of the puzzle - knowing their own motivation.

A buyer needs to understand their purpose of buying at this time?   Is this just a stopping off point in a career?  Are they looking to build equity and move up five years down the road?   Are they looking for a "pennies on the dollar deal" pie in the sky opportunity? 

If I have done my job correctly I should already know the buyer's reason for purchasing.  That is why I ask all those questions up front!

There are lots of factors to weigh when deciding on an offer price.  And, regardless of offer price, if there is financing involved, the bigger question is will the property appraise?

When you are ready to buy a home in Brevard County, Florida, call me at 321-693-3850.  I want to be your Realtor of Choice in Brevard County, Florida.