Formulating an offer

You’ve found a home you’d like to buy.

How much should you offer to pay?

To help answer this important question, your RBS buyer’s representative will prepare a detailed Comparative Market Analysis (CMA) that examines recently-sold properties, active listings, pending sales and expired listings.  Through their multiple Listing Service (MLS), your agent has access to the most current information on properties in your area.

From the CMA and your agent’s personal knowledge, you’ll gain insights on the market in general and the specific property you’re considering–important details that should be factored into your offer.  These include: 

Market Facts

Property Facts

Price of similar properties – both list and sales prices for similar properties in the area 

Property condition – is it in good condition or will you need to make substantial investments in repairs?

Price trends – current percentages of list price compared to sales price

Length of time on the market – a long time on the market may indicate a slow market, inappropriate pricing

or some inherent problem with the property

Supply and demand – in a high-demand, low-supply market your offer may be competing with others

Seller’s motivation – a seller under pressure to close a deal may be more receptive than one who can wait until

the “right offer comes along.”

Absorption rate – number of month’s supply of inventory.  Smaller numbers (shorter time frames) indicate a more competitive market for buyers.

Terms – what terms and contingencies must be written into the offer? Terms and contingencies must be written into the offer?

Terms that make your offer more attractive include an all-cash transaction, pre-approval for financing, quick closing, and few contingencies or seller concessions.

Average time on market – because listings expire or homes may be re-listed to appear “new” cumulative market time is critical

Property history – previous sales and financing history irs?

Count on your RBS AGENT to answer your questions and guide you through these and other important decisions when buying a home.