There were approximately 5,000 home sales in the Okanagan Shuswap Real Estate market in the last 12 months.
The average difference between the list prices and the sale prices of those sales was approximately three per cent, which brings up an interesting question.
What is the best price to offer based on the list price? Many people believe that making a low-ball offer is the best way to get the home for the best price. However, studies have shown that it is not. When a seller receives an offer that he or she considers a low-ball, two things happen. First, it makes the seller angry and they often will not counter the offer at all. Second, the listing realtor uses it as an opportunity to protect his seller. He or she will usually describe the inexperience of the buyer’s realtor and refer to the offer as ridiculous.
Studies have shown that an offer that is two to four per cent below list price is considered by most sellers to be a good start and they will look at it seriously. Also, many times the listing realtor will encourage his seller to strongly consider the offer rather than make it seem ridiculous.
Of course, these are simply tendencies and each buyer should consult with their realtor before deciding on what to offer.
Bill Hubbard is a real estate broker and the owner and broker of a four-office real estate firm in the Okanagan-Shuswap. He has been in real estate for 28 years and has been an owner and broker in Vernon for 20 years. At almost 60 years old he is just as passionate about real estate as the day he started.
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