Hello. I’m fairly new and I’ve been reading and learning much from the podcast and webinars here in BP.
Began using calculator and have looked at several properties. I have some money saved up for downpayment and have good credit.
Well I wanted to make an offer on a property. They ask for 84k, when I run the numbers for it to work for me is max 62k.
If it was sold by owner wouldn’t hesitate, but for some reason think the real estate agent will black list me or something lol
Well getting to the question.
1. Should I look at sold by owner and sold by agent as the same, when making offers?
2. If my max payable amount is 62k, at what point should I begin the negotiation with? I was thinking probably 55k
Any insight will be much appreciated.
1. No. FSBO (For sale by owner) and listed on the MLS are not the same in terms of making an offer because with FSBOs, you'll be making your offer directly to the owner, and MLS-listed properties will have you make the offer to the listing agent, who will then present the offer to his/her client.
2. If 62k is truly your best amount, submit the offer and indicate it is your highest and best offer. You may want to indicate how you arrived at that number as not to insult the seller, but that is optional and by no means necessary.
Your negotiation will depend on a number of factors such as days on market, condition of the property, location, and of course supply and demand just to name a few. Best of luck going forward. The listing agent has the duty to present all offers to their client, unless the client has indicated to the agent not to submit offers to them. If you come in super low, the worst they can say is 'no' and reject your offer.
@Bob Okenwa thanks glad I asked 😀
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