Buyers are afraid of two things: 1. Paying too much 2. moving in and finding out something is wrong with the home. Sellers are afraid of two things as well: 1. Selling too low. 2. The buyers suing them for something later on. With these two fears on both sides, it can make the offer process both fearful and emotional. Making your first offer is an important step that needs preparation and analysis. Go in knowledgeable, with consideration of all the components starting with price, which conditions you feel are needed, terms, and the best completion day. Always remember there is no exact price for a property, it comes down to what a willing & able buyer is willing to pay and what a willing seller is willing to accept. We study the recent sales to give us a comfortable starting point but its never exact. For example: Many times, I've represented sellers that were very attached to their price. One seller in particular received several offers that were lower than they were willing to accept so the buyers all walked away. Two months went by without offers when suddenly a new buyer made an offer that was also low. The seller countered higher and after several conversations, the buyer decided they loved the home enough and paid what the seller wanted. You could argue the buyer paid too much, but did they? At that time the market was slow, but a year later the market increased by 8% and that buyer was now a genius. THERE IS PHYSIOLOGY IN HOW BUYERS AP UYERS APPROACH MAKING OFFERS In Canada we tend to accept that most products we buy that are brand new have a non-negotiable price attached to it, but the moment that it's in the resale market we are taught to negotiate. This makes us all feel that we need to make a lower offer than the asking price, right? At one time the strategy for most sellers was to ask a little higher than where they wanted to settle leaving room to come down, and the buyer would come in low leaving
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