Q: I’m looking to buy a home in New York’s Hudson Valley, but I’ve noticed that sellers are sometimes asking a lot more than the property is actually worth. So when I make an offer, when should I go low and when should I offer what I think is a realistic market price? My real estate agent and I have different ideas. I follow the rule that “it never hurts to ask,” especially when it comes to properties that have been on the market for months. Any advice would be appreciated.
answer: No two potential home buyers are the same, so there’s no universal answer to your question. Either way, to build a good working relationship, you’ll need to be upfront with your agent about your strategy or find a different agent who can support your goals.
John Avenier, a broker with Columbia County Real Estate Specialists LLC, said sellers may have set their prices using local market data, or because they know they want to achieve a certain price, or a combination of both.
One thing you can do is have a conversation with the seller’s agent to find out what kind of offer your client is likely to accept. “Whether the seller is open or not, you need to understand the local market, similar properties, and market trends,” says Jeff Cohen, a real estate agent with NextStopNY who has worked in New York City and has experience in the Hudson Valley.
An experienced real estate agent who knows the area can help you devise a strategy: If the seller’s asking price is too high based on recent sales prices of similar properties in the area, and if the home has been on the market for above average days for the area, you should consider offering a lower price.
“But keep in mind that the seller may not accept such an offer or may not respond with a counteroffer,” Cohen said.
In any case, potential buyers should make an offer within the range of what they think the property is worth. “It would be a shame to undervalue it and miss out on the opportunity to give it to another buyer,” Avenir says. “It would be even worse to overpay for the property.”
He noted that some homebuyers have had success by offering a property well below what they believe is its market value, but the success of this strategy has declined in recent years as the housing market has become more overheated.
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