After constant showings and a few disappointments, your buyer has finally found their dream
home! Its exciting and they are finally willing to put in an offer. As their agent, the last thing you
want is for them to lose out on their dream home or come in over priced. Whether it is only their
offer being presented to the seller or you are in a multiple offer situation, there are some key
things to keep in mind to get your offer accepted. As both sides want to feel as if they are
getting a deal, from a buyer side, there is more to it than having an agent with good negotiation
When your client has found a property that they want to put an offer in on, the first thing you
want to do is look at the numbers. You’ll want to break down the asking price based on square
footage. The numbers won't ever lie, and it keeps your negotiations based on pure fact and not
emotion. To see if their asking price has some wiggle room, you'll also pull numbers on recent
sales and other properties that are currently being listed for three to four other spaces nearby.
What does “recently sold” mean? It means properties that have sold within the last 4-6 months.
If the space your looking to buy is within a building or high-rise, you’ll pull three to four comps
within the same building, and 3 to 4 other properties within a few blocks of the building.
When you get an average of price per square foot of recently sold properties and of properties
that are currently being listed, it gives you a solid foundation to go in with a solid offer. The
seller may have emotion tied into their listing price, so sticking to the numbers will allow any
counter offer stay fair based on comps. You’ll also want to tie in any outstanding factors that
could tie into the price point. Things such as new development, deeded parking, community
upgrades that show an increase in demand affect your offer as well.
When your seller comes back with a counter offer, don’t be afraid to stand your ground. If you
base your offer on the numbers, don't be afraid to explain how your offer is fair. The buyer could
also hold their price as a counter but throw in buying the property “as is”. Always have your
buyer review the property disclosure report before they ask you to put in an “as is” offer. This
report should be shown to a buyer always before an offer is submitted for full disclosure of their
purchase but sometimes a buyer can be quick to purchase so its the agents responsibility to
keep them informed so they get the best deal.
The only thing that could really kill a deal when using this strategy is if the buyer changes their
mind last minute. This sounds obvious but sometimes a buyer who initially started their search
as purchase for themselves, can change to want a property for investment purposes so they
can rent it out if they want. Often times in a city, you have buildings that are either investor
friendly or not. If your buyer changes their mind and they decide to purchase a property that is
investor friendly, the whole deal could fall apart very fast. Be sure to know your buyers
intentions, even if they don’t claim to be looking for an investment property, keeping them
educated on the area could save everyone a lot of time, and eliminate surprises.