Home prices in Redding have finally reached levels where more people can qualify for a loan. In fact, there are many homes available that can be purchased for less than the cost of building new. You can verify this by searching “properties for sale in Redding” and all other cities in Shasta County. I think you might be surprised; there are some real bargains in real estate right now.
As a result of the market turn-down, buyers are feeling pretty proud. So much so, that when some of my clients decide to make an offer on a property, they typically offer much lower than the asking price. In other words, they make a lowball offer. And, sometimes this strategy works with actual homeowners. However, when it comes to REO properties, low-balling rarely works. The reason; banks and their agents know the market well, they are unemotional and usually have the property priced to sell fast.
You may be surprised to know, even in hard-hit housing markets, homes in desirable neighborhoods are receiving multiple offers. Therefore, become an expert in your local housing market and learn to make offers sellers and banks hate, but are afraid to reject. Low-balling often results in the seller making a counteroffer at a higher price than they may have otherwise accepted. If your offer is closer to the sellers “acceptable” threshold, you might get a great deal on your first try.
Determining a sellers acceptable price threshold is somewhat of an art. Sharp Realtors® can provide the data you need when determining a purchase offer price. There are many factors to consider when making an offer; such as, how long the seller has owned the property, the amount of outstanding loan(s), if any, days on market, condition of the property and the biggest one of all, the location of the property.
There’s an old saying among professional negotiators, “pigs get fat, but hogs get slaughtered.” The point is that you should be aggressive when making an offer to purchase, but if you go too low, you could blow the deal altogether.