No price? No problem 

As seen in The West Real Estate

As a real estate agent, one of the questions buyers often ask me is “how do I know how much to offer?”

This is simpler when the property has a price guide, although in the current market, where the high demand for property is seeing many homes sell for over the asking price, it is still a challenge.

However, buyers find it more difficult when a property is advertised without a price, such as offers, expressions of interest or as an auction.

No-price marketing can be an effective selling strategy, particularly in a rising market. Agents are obligated to act in the best interests of their clients, and that includes working to get the best possible price for a property. Current heated market conditions make it difficult to determine a price, which is why you’re seeing a lot more properties advertised this way - they let the market set the price.

That’s good for the seller, but as buyer how can you figure out how much you’re expected to offer?

First, get a good idea of your budget. Go to a broker and find out what your borrowing capacity is. Then you’ll know what your limits are. Also try and get your finance pre-approved. It will put you in a stronger position when making an offer.

When you start your search, use the price filters on real estate portals. When you search by price on www.reiwa.com, it will find homes within that range, even if they are being sold at auction or advertised as “offers closing by”.

When you find a property you like, use the Sold feature on www.reiwa.com to compare it to properties in that area that have recently sold. Make sure you compare like-for-like – similar land size, number of bedrooms, does it have a pool? That will give you an idea of what you can expect to pay.

I note that the above suggestions provide guides and not guarantees. Due to the strong interest in the market at the moment, a property could sell for more than estimated or what other properties have sold for. But it is still helpful to do to your research.

Then, armed with that knowledge, be prepared to make the best offer possible. This doesn’t just mean financially. Ask the agent what you can do to make your offer more attractive to the seller. In this market that could be a longer settlement, or the chance to rent the home back while they find a new home.

Finally, why not work with a REIWA buyer’s agent? You can let them know what you are looking for and what your budget is. They will then do the legwork and present you with options. This saves you time and stress.

Joe White
REIWA President