Wednesday, May 16, 2012

Millburn-Short Hills Real Estate: What should you bid?

Have you settled on a piece of Millburn-Short Hills real estate you'd like to make a bid on?  Congratulations!  The hardest part of finding a home is behind you, but making a bid still requires a bit of skill.  You don't want to  bid so low that the seller is insulted and refuses to negotiate with you, but you also don't want to end up bidding too high and paying more than necessary.  Here are tips on how to figure out the perfect amount to bid:

Research comparable houses
This one is obvious, but important.  Are you buying a twenty-year-old, two-bedroom ranch house with an attached garage and a small, fenced-in yard?  Then comb recent home sales in the area and see what twenty-year-old, two-bedroom ranch houses with attached garages and small, fenced-in yards went for in recent months.  Do not compare apples and oranges, i.e., a newly-built home with one that's been around for sixty years or a mid-sized townhouse with a large Victorian.  Also, compare what they homes sold for against what they were listed for to get an idea of how low you can reasonably bid.

Consider the neighborhood
The exact home in two different neighborhoods will often sell for two different prices.  Do your research.  Has this neighborhood have a higher than average noise level?  If so, you can definitely bring that up during negotiation as a reason for wanting to pay a lower price.  The same goes for any factor that can be considered a detriment such as planned local construction and crime rates.

Figure out the seller's position
Once you've researched similar houses and the neighborhood you should have a clear range of what you will end up paying for the home.  Figuring out the seller's position can help you decide how low you can bid from within that range.  Has the house been on the market for a long time, or was it just put up last week?  Does anyone live in it, or has the seller already purchased and moved into another home?  The more urgently they want it sold, the lower you can bid.

Bidding on Millburn-Short Hills real estate (or any real estate, for that matter) can be a difficult process.  I highly recommend consulting a professional.  If you have any questions about buying or selling a home in the area, please feel free to contact me.

Elaine Pruzon
Coldwell Banker Residential Brokerage
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1 comment:

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