Saturday, 7th of January 2012 at 08:44:55 AMSo what are some of the things that buyers think about when looking at homes, well, the obvious first thing is location. I want to be close to work/school/entertainment. Hence the reason the 3 most important things in Real Estate is Location, Location, Location. So knowing that, let’s jump into the fourth factor, price. One factor that I’ve seen form the opinion of making an offer more than anything else is price. It’s also the first factor that is controllable by the seller. The seller can list the home too high and miss their market completely because it won’t show up in the automated searches Realtors® set up for their client, price it too low and you could create a bidding war or questions about the true value of the home.
Buyers are also thinking about the value of the home, is this price include everything I want or will I have to contribute more to this home to get the home I want. Let’s take a buyer that really wants a pool, 4 bedroom and 3 car garage in the $200,000 price range. If I can find a home that has everything he wants but the pool and it’s likely he can get it for $170,000 and the cost to get his desired pool is $30,000, we’re where we want to be on price, but he will have to consider that time it will take to add the pool and the disruption to his enjoyment as the pool is being installed, the home may not look as appealing as one that matches his needs for $210,000. There are several reasons for this, one is his time to get the home to what it needs to be and the other is immediate enjoyment. This is one of the reasons why negotiations is so individualized to the two parties involved in the transaction.
Now you can apply the same concept to floor color, kitchen cabinets or any other element of the home. Understanding and communicating the needs of the buyer is important to the seller and their agent so they can work with and adjust the offer to make it work as much as possible with all the desires of the parties involved. When I represent the buyer, I try to determine the needs and desire of the selling party as much as I can so I can customize the offer to give them what they need within the boundaries of what my client needs and wants. This helps create that win-win feeling and also helps our offer feel like the right answer for the seller.
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