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How Much Should I Offer?

Lakeside Real Estate

What you offer on a Big Bear property depends on a number of things, such as the maximum price you’re willing to pay for the home, the risk of losing the home to another buyer, appraisal value, and how realistic the asking price is.  Though homes in Big Bear are selling for an average of 96% of the listing price, there is no cardinal rule for a fixed amount that a seller will negotiate from their asking price. Every property & every seller is unique.

The Big Bear real estate market is in a transition from a buyer’s market to a seller’s market.  There are many properties for sale where the listing price is at, or very near market value, and where price negotiation will not be as great as other properties on the market that are priced well above market value.  Don’t be surprised to find that there are multiple offers on many properties for sale in Big Bear.  There’s no shortage of qualified buyers for good deals!  Multiple offers occur more often than most buyers imagine, and it happens when a property is correctly priced compared to the market supply.

Word to the wise, if you get involved in a multiple offer situation, remember that you are trying to buy a house, not beat out another buyer.  If it is all about beating the other buyer, you may ultimately be disappointed with your choice in the end.

When negotiating a real estate purchase offer, the seller wants to sell at the highest price and the buyer wants to buy at the lowest price. The reality is that a home will sell for what is worth, regardless of whether a seller is looking to get more or a buyer wants to pay less. Contract negotiation is all about getting agreement between both parties.

Often overlooked by home buyers at this point in the home buying process is the experience and value of their Realtor in the contract negotiating process. All real estate agents are not the same.  In preparing to make a contract offer, a buyer needs to obtain as much information as possible, and much of that information will be provided by their agent.  Knowledge equals leverage.

An experienced buyer’s agent should prepare, provide and review a comparative market analysis of the home and provide the history of the listing with their client when preparing a offer. In addition, a buyer should also obtain the sellers’s disclosures and obtain additional background information about the home, such as any recent inspection reports or appraisals, the sellers desired closing time frame, if any offers were previously submitted, or if an offer is currently being negotiated. This is information buyers should have when preparing to make an offer. Information like this is invaluable when deciding what price to offer and how to negotiate.

In the end, one size does not fit all.  A home buyer needs to decide how much they want a specific home and at what price they are comfortable paying.  By reviewing comparable sales & listings in the area, a good idea of the market value can be established.  But, what a home is truly worth will be decided by the buyer & seller, not the real estate agents or appraisers.

One last thought to keep in mind when making an offer: if you are not willing to walk away from the deal, you are not truly negotiating!  Easier said than done when it comes to emotions of buying a second home in Big Bear.

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