The Best Price for a Home
Buyers often ask, “What do you think the best price would be for this home?” The answer is:
- The lowest price that the seller is willing to accept.
- The price that a buyer can negotiate the seller down to.
- The price a buyer is willing to pay to get what they want.
When buyer clients have found a home that they are considering placing an offer on, I provide a Comparative Market Analysis for my clients which lists all of the homes in the area that sold in the past six months and have comparable attributes to the home they are interested in such as home size, lot size, number of bedroom and bathrooms, age and amenities. Using this data to discuss an offer price starting point, I tell my buyers, “We will negotiate with the sellers until we arrive at the price they are willing to accept. We will then know what the best price is for the home you want. At that point you’ll know what no one else knows – the amount the seller is willing to accept for their home.” At that point the buyer then needs to decide if the price is also acceptable to them.
The key is to remain as calm and objective as possible (sometimes no mean feat!) during the back and forth of negotiation. Because this is fraught with emotion, having an experienced Realtor who has handled many negotiations is the best possible move a buyer can make.