Six Questions to Ask Before Making An Offer

When you are buying a home, there are many problems that the seller is obligated to disclose, but, these disclosures don’t always paint the entire picture of the home. Here are six questions you may want to ask that can offer additional insight about the prospective home before you make a final decision.

1) Why is the seller selling the house?
This question may help you evaluate the “real value” of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.

2) How much did the seller pay for the home?
This question can, in some instances, help the buyer negotiate a better deal—maybe even get the seller to carry part of the loan. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.

3) What does the seller like most and least about the property?
By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a “happening community,” the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.

4) Has the seller had any problems with the home in the past?
It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should also check that these items were repaired properly.

5) Are there any nuisances or problem neighbors?
Use this answer to find out about any noisy neighbors, barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.

6) How are the public schools in the area?
Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer’s perception can give you some insight about the quality of the area’s schools.

Knowing all you can about a prospective home, not only helps you decide if it’s the home of your dreams, but what offer to make as well. Your real estate professional can help you get your key questions answered and give you advice on how to evaluate your findings.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Don't Make the Mistake of Overpricing Your Home

Pricing matters. When you decide to sell your home, one of the most important decisions you'll make is your initial listing price. Of course, you want to get as much for your home as buyers may be willing to pay. However, when determining the price, don't make the mistake of overpricing. It's an understandable mistake, but one that could prove costly if it slows down the sale and/or makes other homes look like a good value by comparison.

One trap many sellers fall into when deciding a price is basing it on emotion. After all, your home has been special to you and your family. You've perhaps made changes and improvements over the years. But you need to ask yourself: how important are those changes to a potential buyer? How up-to-date are the improvements? It is easy to think your home is worth more than your neighbor's or more than the current market may support. But, if you overprice your home, you may attract the wrong buyers--buyers who will compare your home to other homes within the same price range and walk away disappointed. Some of those other homes may have more amenities or be in better condition. At the same time, you may eliminate a pool of potential buyers who are shopping for homes priced in the range of your home's true market value.
Another challenge you face with overpricing is less initial traffic and diminished interest.

Generally, a home receives the most activity during the first weeks its on the market. If your home is priced more than similar homes in your market, it may discourage potential buyers who believe they can get a better value somewhere else. In addition, real estate professionals tend to not guide qualified buyers to overpriced properties. And, the longer your home stays on the market, the more buyers may begin to reason that there is something wrong with the property.

If you overprice your home with a thought of using a "price high then drop" strategy, you run into the same risk of buyers believing that something is wrong with the property--or that you are desperate to sell. Eventually the property may sell, but at how much of a loss--especially if you have purchased another residence and now have to cover two mortgages and pay ongoing expenses?

Overpricing can also result in fewer offers. For various reasons, buyers may feel uncomfortable submitting a low bid when there's a considerable difference between the market value and selling price. And, if you were to accept a bid at an inflated price, your buyer may face financing problems, because an overpriced house will not appraise for the selling price.

What can you do to ensure you're not overpricing your home? Stick to the facts. You may want to hire a real estate appraiser for an objective unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis. The key is to work with your real estate professional to price right and create a strategic marketing plan that creates excitement from the moment your home debuts on the market.

Don't let the temptation to overprice keep you from your best chance of getting the best price, quickly.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

The View from Above

Whether you're shopping for a new home in Thurston County, or are simply curious about your own property, Thurston GeoData Center (www.geodata.org) provides a birds-eye view. Once you've located your parcel, searching by address, parcel number, or section, you can refine the view to show any number of features, including property lines, aerial photos, water features (including wetlands), roads, easements, zoning, and more.

Here's a small excerpt of the 2003 aerial photo of our office (highlighted in red), with parcel boundaries.

A word of caution: GeoData is one of those free online tools that can become downright addictive, as you look up your property, then your relatives and neighbors, then your office, then ...

On the plus side, it's free and internet based, so unlike Google Earth, you won't have to download a program (and have 400MB free on your hard drive!).

Happy exploring!