photo credit: Nils P. Prior to making an offer on a home, many home buyers like you generally want a complete list of information about the home or a seller’s selling situation that can ultimately influence the price you pay for the home. Not having a complete list can be frustrating when deciding on what to pay for a home.
Prior to Making an Offer on a Home, You Should Know
- Listing Date, the day the home went on the market
- Original Listing Price (OLP)
- Price Changes
- Days on the Market
- Status changes from attorney review to under contract
- Past listing expiration dates, assuming the seller ever listed the home for sale prior to current listing status
- Possibly even the reason why the homeowner is selling
- Type of financing the homeowner is will entertain (Cash, Conventional, FHA, Rehab loans like FHA 203k, Seller Financing)
- Whether or not the offer is subject to lien holder approval or bank approval
- If the seller is willing to offer a seller’s concession
- Desired closing date by the seller
- Additional terms the seller may be offering Ex. “As Is” condition, who is responsible for the certificate of occupancy and smoke certification, additional contingencies.
Check out this Listing History Screen Shot from the Garden State MLS versus the Middlesex MLS’s Archive Report
- Number of showings
- How many offers are currently on the property or home
- Number of offers the seller has rejected, if any
- Highest and best offer the seller has received
- Current Market Value or Fair Market Value, which your agent will help you determine what offer to make given location and condition of the home
Here is an example of a house that was listed for sale in Union, NJ. It was not listed for sale by me, but by another agent, a agent that I am friendly with. I showed the house in the photo array above to several buyers over time and kept track of while it was on the MLS listing. I liked it at $299,900. I liked it at $275,000. I LOVED it $249,900.
Over time, it was listed at three different price points. I did like it at all three prices, but when it was listed at $249,900, it was what we call in the business as being priced to sell. I remember that when my agent friend took the listing, she did everything right form a marketing standpoint. She made sure that the house was accessible; she staged it; had plenty of photos online and even held several open houses in addition to syndicating the listing to everyplace imaginable on the web. . .But after a few weeks of hearing why buyers wouldn’t buy the home, she knew that chaging the price was the only way to attract new buyers.
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