I almost fell off my chair when my client uttered that phrase. I had to do a double take and ask her to repeat it so that I was certain that I had heard it. It was rephrased but the message was still there: Like a car, one should never pay list price for a house.
This initiated all manner of thoughts while trying to stifle my first response.
Buying a House is Nothing Like Buying a Car.
A house is a much larger purchase and unlike a car, there are not row upon row of homes sitting on a street just waiting for a buyer to give it a test ride.
A home purchase is the single largest investment many people make. In order to make that purchase, the buyers must first find out if they qualify for a mortgage, and if so for what value. For a car, they need only show up with a pay stub and a deposit, and may well drive off the lot within a few hours with a model and color choice of their choosing.
Dependent on desired location and available inventory, there might not be a house there for a potential buyer to see, let alone on which to place an offer.
Now assuming you have gone through the process of getting qualified; are working with a real estate agent and have finally found your home, it's now the process of writing a contract.
When it comes to placing an offer, your agent will need to look for recent comparable sales on homes similar to the one being considered, some adjustments may be considered assuming all are not equal and a reasonable range for fair market value will be determined. It's not a matter of looking at the 'sticker' price of the house and just assuming a 20% reduction is a reasonable offer.
Consideration has to be given as to the type of market, buyer's or seller's as well as length of time on market, reductions made to the house and also in some instances if home owner is underwater and in a short sale.
The real estate professional will offer their expertise as to the home's value and should guide the buyers to a price that will get consideration and not insult the seller to an extent that no consideration or counter is given to the contract. There is no back room sales manager that offers nothing but how much can we get out of that buyer.
If you are looking to buy a home in Central Connecticut and want a full time professional that will get you a fair deal on a home purchase then you should give me a call.
Buying a Home Isn't Much Different Than Buying a Car
Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!
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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott
Ed Silva RE/MAX Professionals, 203-206-0754