Property Specific
1. How long has the property been on the market?
The days or time on the market may indicate the seller's willingness to negotiate.
2. Have there been any price reductions during the listing period?
The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract offers.
3. Has there been any other offers on the property?
It will be helpful to know what offers have been turned down and for what reasons. Also, if a deal fell because of an inspection, you want to know why.
4. What is the motivation of the seller?
Motivation is the key element. For example, if a seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiations.
5. What personal items are included in the sale?
Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.
6. When did the seller purchase the home and how much did the seller pay?
If a seller has seen a significant increase in his/her property value, he/she may be more willing to negotiate on price.
Neighborhood Specific
7. What is the price range of SOLD properties in the area?
This info is important since it will indicate the top and bottom of that specific market.
8. What is the average time on market for properties in this area?
Short market times may indicate a seller's market. If this exists, you may face comp- etition from other buyers. Remember: even in a seller's market, good homes go quickly.
9. What is the list to sale price ratio in this area?
This info may indicate a sellers' past willingness to negotiate and by how much.
10. What is the average sales price per square foot of recent solds?
This value approach works best in an area with similar homes, lot sizes, and improvements.
11. What other known factors about the property or neighborhood could affect value?
For resale purposes, its important to evaluate potential downsides of a home / neighborhood.
Final Recommendation
If you will be financing the property, get pre-approved for a mortgage prior to making an offer. This will show the seller your commitment and ability to perform.
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