How to Determine Offer Price

How to Determine Offer Price

  1. Never tell Buyer(s) what Sales Price they should offer.
  2. Obtain pertinent information for Buyer(s) to be able to make a competitive Offer Price.

What to Do When your Buyer(s) Want to Make an Offer

  1. Go back to the Office to obtain pertinent information.
  2. Call the Listing Agent and ask:
    1. Is home still available? Perhaps nothing is worse than spending your time and the Buyer’s time in preparing an offer only to find out it already has an accepted contract.
    2. How many offers do you have?
    3. Try to see if Listing Agent will let you know how “good” the offers are. They are under no obligation to tell you, but you can try.
    4. Ask Listing Agent: “What is your Seller looking for in an Offer?”
  3. Multiple Offer considerations.
    1. There is no set “rule,” but you might consider adding $5,000 per offer to you Offer price consideration.
    2. For instance, if there are 3 offers, you might want to offer $15,000 over list price.
  4. “Pull” new comparables from MLS
    1. Be more selective in homes you choose [similar in age, size, etc.]
    2. Discuss with Buyer(s) why the comparables are priced as they are. [consider upgrades, location, etc.]

Buyer(s) will then tell you what price they want to offer.

  1. Hopefully, they will take into consideration all of the pertinent information you have presented to them.
  2. Remember, as the Selling Agent [representing the Buyer], you have to write up an offer with whatever offer price they suggest, even if you know that it most likely will not be accepted. Sometimes, it takes a few “rejections” for the Buyer(s) to realize that you may have a better understanding of what to offer in order to get the Offer accepted.
in Buyers