The Contract Offer: What Price to Start With

by David Fialk

When a decision is made to make an offer to purchase a home, be sure to go back and take a second look. It is so much easier changing your mind about a home before a contract offer is made than after a contract offer is accepted and signed by the seller. This second appointment would be a perfect time to bring along others who may have an impact on a buying decision, such as parents, friend, contractor, etc.

Go through the home a second time and look beyond the owner’s décor, whether it was the home just previewed, the first one seen earlier in the day or the one previewed last week. Why? There are many reasons, but most importantly is seeing if the second look creates the same good feeling as the first, and then taking a closer look to see if there are aspects of the home missed during the first preview which may alter the decision to submit a contract offer.

So what is the right price to start with?

That depends on a number of things, such as the risk of losing the home to another buyer, how close to market value the seller’s asking price is and what is the maximum price willing to be paid for the home. As mentioned earlier, there is no cardinal rule that there must be some fixed amount that a seller will negotiate from their asking price.

Even though the current market is considered a buyer’s market, there are many properties on the market 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.
In fact, don’t be surprised to find that there are multiple offers being submitted and negotiated. This does occur, more often than most buyers imagine, and it happens when a seller prices their home to sell and sets a very attractive list price to attract buyers and sell fast.

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, whether a seller is looking to get more or a buyer wants to pay less. Contract negotiation is all about getting agreement.

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. 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 buyer agent.

This is the point in time when buyers need to have trust in their REALTOR when asking for recommendations and guidance. The truth of the matter is that this is the point in time when the buyer must know and believe that their agent’s concerns are for them, and not for themselves!
An experienced buyer’s agent should prepare, provide and review a market analysis of the home and provide the history of the listing with their client when preparing a contract offer. In addition, a buyer should also a obtain a sellers disclosure if one is available and obtain additional background information about the home, such as the sellers desired closing time frame, if any offers were previously submitted or if a contract offer is currently being negotiated. This is information buyers should have when preparing to make a contract offer. Information like this is invaluable when deciding what price to offer and how to negotiate when submitting a contract offer.

So how does a buyer start negotiating to purchase a home?

That depends on the home. There are homes on the market for sale that are simply over priced, some slightly over priced, and then there are those listings that are priced to sell. There are home sellers who are pricing their home at three year ago price levels and will sell only if they get their price, there are sellers who must sell within a certain time frame and there are sellers who just have to sell.

In contract negotiations, one size does not fit all.

While there are many homes on the market, only one buyer gets to own the home in contract negotiations. A home buyer needs to decide how much they want a specific home and at what price!

Published: July 6, 2009
Copyright © 2009. Realty Times ®. All Rights Reserved.

Naples Real Estate Sales Up in June 2009

The second half of 2009 continues to be a strong buyer's market with incredible values for those wishing to make a move to Naples for the first time or up in size or location to a waterfront or beachfront home.

There were 647 sales (excluding new construction sales) in June of 2009 compared to 493 during June of last year. Forty-eight (about 1.6 homes per day) of the June sales this year were luxury homes and condos over one million dollars. At the pinnacle of the June market, a home in Port Royal sold for seven million dollars.

For specific information on closed sales, please contact us and we'd be happy to provide you with lists and detailed information so you can make the best buying or selling decision. Or follow this link to search for all Naples real estate for sale.

You can reach Mark Weber, broker for White Sands Realty at 239-289-0799 or by email at markw@whitesandsnaples.com

Reality Check: Tweet & Sell

By: Maxine Ginsberg

"Twitter” used to be a word. associated with bird sounds or general excitement, but now it’s synonymous with a high-flying social media service based at Twitter.com. Oprah, actor Ashton Kutcher and CNN have recently nudged Twitter further into the national conscience, but the publicity was hardly necessary. Unofficial figures for the free service that bills itself as a place for friends to connect estimate monthly users in the millions.

The networking potential of the hot new medium is not lost on Naples real estate broker Mark Weber. The owner of White Sands Realty reports he has been posting “tweets” on his site for about three months and has good results.

“I've heard from people from various parts of the country and even from a man in Greece,” the Naples realtor says. “I like the immediacy of it and the opportunity to create a global presence.”

Weber’s Twitter site, NaplesProperty, includes a short biography, family photo, some quotes, real estate advice and, at one point, a virtual tour of a $16.4 million sold property that has drawn a lot of response, he says.

“Twitter is as much about giving your knowledge freely as it is self-promotion,” he says. “It’s truly an interesting balance, siding on giving. Then, every once in a while, when you need to promote something truly worthy, your followers will listen to your request. A good, but unwritten, rule is that for every self-promoting tweet, you should give seven tweets of unique, free information.”

For example, Weber recently informed followers about a new addendum to real estate contracts concerning Chinese drywall and supplied a link for those who want more information.

“Tweets are limited to 140 characters,” he explains, “so you have to be concise and plan your content carefully.”

Followers, as they are called, can access Twitter through their cell phones or computers. Those who have a registered site can also forward material received. Weber says he likes his heightened profile and the increased prospects for new business.

“There may be potential home buyers out there with whom I’m making a connection, or fellow professionals with whom I can forge mutually beneficial,” he says. “One guy in California contacted me about referrals, and a couple seeking a local condo also found me through Twitter.”

Copyright © 2009 ®. Gulfshore Life Magazine All Rights Reserved.