How Market Conditions Affect Your Offer Price

1. Are You Buying a House or a Home?
2. Buying a Home With Resale Value
3. Why Buying a Home is a Good Idea
4. Why Search for a Realtor, Anyway?
5. Pre-Approved Verses Pre-Qualified Loans
6. The Strategy of Selling First, Then Buying
7. Determining Your Offer Price
8. How Property Condition Affects Your Offer
9. How Market Conditions Affect Your Offer Price
10. Contingencies in an offer to Purchase Real Estate
11. 1031 tax-free exchange

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How Market Conditions Affect Your Offer Price
A hot market is a “seller’s market.” During a seller’s market, properties can sell within a few days of being listed and there are often multiple offers. Sometimes homes even sell above the asking price. Though most buyer’s want to get a “deal” on a home, reducing your offer by even a few thousand dollars could mean that someone else will get the home you desire.
A slow market is a “buyer’s market. During a buyer’s market properties may languish on the market for some time and offers may be few and far between. Prices may even decline temporarily. Such a market would allow you to be more flexible in offering a lower price for the home. Even if your offered price is too low, the seller is likely to make some sort of counter-offer and you can begin negotiations in earnest.
More often than not, the market is simply “steady,” or in transition. When a market is steady, no real rules apply on whether you should make an offer on the high end of your range or the low end. You could find yourself in a situation with multiple offers on your desired house, or where no one has made an offer in weeks.