First Time Buyer

As a Realtor that does a lot of his business via the Internet, I’m asked many questions from folks that aren’t familiar with our area or market. Everything ranging from “What’s a rambler?” to “Does it really rain there all the time?”.

Many of my clients are moving into the area and often don’t know much about Washington, other than we have a lot of coffee and good music. Most people want to know as much as possible about the new area they are moving to and readily ask questions. As a lifelong resident, I am happy to oblige them.

One thing I’ve noticed my out of town and local clients have in common is a reluctance to ask about negotiating a winning home purchase in advance. There are many reasons why people are reluctant to speak about the issue with their agent and that’s an entirely different post.

So without addressing the many causes of the reluctance, let’s focus on how to make a winning offer on a home in this market.

What’s a good deal to you?

Like most people you want a “good deal”, right? To help you find that home, your agent will need to know your definition of a good deal.

You’ll need to take an honest look at yourself and determine what your true motives are. Are you looking for the best discount off of list price or the best home for the money? They aren’t always the same thing.

What’s really going on in the market?

Now that you’ve defined what a good deal is to you, you’ll have to take a realistic look at the market you intend to buy in. Taking your cues from the local or national media is fine for a general overview. Of course they’ll tell you it’s a buyer’s market and they are right in certain areas and price ranges. For other areas and price ranges the market could be better classified as a balanced market or even a seller’s market.

Knowing the true market conditions of an area and price range is crucial to placing a winning bid on a home. (If you are looking for a real deal, there will be competition for the home.) Misjudge this and you may pay too much or lose the home to a more savvy buyer by offering too low. For real, up to date market knowledge, you’ll want to employ a good buyer’s agent.

Now that you know your true motivation and have good market knowledge on your side, you are ready to answer your own question.

How much should I offer on the home?
Only by knowing your true motivation and the realities of your market can you offer with confidence and ensure your offer wins the home at the right price for you.

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