Thursday, October 1, 2015

Offensive Offer to the Seller?


Question:  A property was on the market for $260,000. The price is far higher than sales made in the past 3-4 months. We offered $205,000. This offer was rejected outright and not countered. The next day, the price dropped to $249,900.

So my question is, was our offer just offensive to the seller?

Answer:  Sellers have the right to test the market. That homes have not sold for a given price previously does not mean the owner or the owners broker were somehow wrong. Prices rise in some communities, which means someone must be the first to breach a given price level.

The marketplace will ultimately decide the value of the property. That said, buyers have a right to bid for properties according to the value they see. You, as a purchaser, may have felt that the property was worth less based on past sales, available properties, condition, location, design, etc.

How do you know what the seller will accept unless you make another written offer? A real estate transaction is a business deal – you made an offer, it was rejected and both parties can decide what they wish to do next, if anything.

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