Making an Offer
It’s is impossible to name the price that a Property will sell for, however, at our disposal are several tools and data that we are able to arrive at what is referred to as “market value” . This is value perceived as being the price the property should be sold or bought for.
Tools and Data used to make an offer
There are several tools such as CMA (Comparative market Analysis) conducted using similar property that are For Sale now, similar properties that have been sold. Motivation of the seller and the Sellers reasons for selling can influence the price and terms on which the property can be sold.
All too often the Buyers is inquisitive on how much the Buyers had paid for the same property, however is imperative to note that what is really important is that the Buyers is paying “Market Value” for the property.
“Market value” and multiple offers?
Let’s start by looking at where the real estate “Market” is? Is demand high and are homes selling relatively quickly or are there more homes on the market and demand for them is lower than expected.
When there lesser home and Buyers are paying above market value for them – that a Seller’s market.
When there are too many homes and are not selling as fast and the Sellers are accepting offers below asking Price – it normally indicates a Buyer’s market.
So if when making an offer in a buyer's market, not only will you have less competition for the home. Sellers will be more likely to be approachable to offers that reflect the “true” market conditions. This may act in the Buyers favours.
In a Seller’s Market, the Buyer needs to re-examine his real reason for acquiring the property. Sellers will look at all offers and that also means that the Buyers have a possibility of getting the property at an attractive price possibly even below “Market Value”.
Condominium Prices per Sq Foot
When buying a Condominium, several factors including the above discussed so far apply. Historical sales and current For Sale Properties within the Condo Building and in neighbouring Condominiums can create an excellent idea on what the properties “Market Value” could be.
Condominium prices differ by views, floor height and by Square Footage. I most condominium buildings the floor plates of the model are similar on pretty much a number of floor as such if a similar condo unit is sold on a higher or lower floor, adjustments can be made to arrive at “value” of the one for sale provided they are identical on upkeep and upgrades.