How do you back up your offer strategy with data?

1 Know the comps

Comps, or comparable sales, are recent transactions of similar homes in the same area as the one you want to buy. They can give you an idea of the fair market value, the demand, and the trends in the neighborhood. You can find comps online, or ask your agent to provide you with a comparative market analysis (CMA). A CMA is a report that compares the features, prices, and dates of the comps, and helps you determine a reasonable offer range based on the current market.

2 Analyze the price history

Another data point that can help you back up your offer strategy is the price history of the home you want to buy. How long has it been on the market? Has it been reduced or increased? How does it compare to the original asking price and the comps? The price history can indicate how motivated the seller is, how competitive the market is, and how realistic the price is. For example, if the home has been on the market for a long time, and the price has been reduced several times, you may have more room to negotiate a lower offer. On the other hand, if the home is new on the market, and the price is in line with the comps, you may need to act fast and offer at or above the asking price.

3 Consider the condition and upgrades

Another factor that can influence your offer strategy is the condition and upgrades of the home you want to buy. How well-maintained is it? Does it need any repairs or renovations? Does it have any features or amenities that add value or appeal? You can use data from home inspections, appraisals, and online tools to estimate the cost and value of the condition and upgrades of the home. For example, if the home needs major repairs, you may want to offer less or ask for a credit or contingency. If the home has high-end finishes or energy-efficient appliances, you may want to offer more or highlight your appreciation.

4 Review the market data

Finally, you should review the market data of the area where you want to buy. How is the supply and demand? How fast are homes selling? What is the average price per square foot? How are the interest rates and inventory? You can use data from online sources, reports, and your agent to get a sense of the market conditions and trends. For example, if the market is hot, with low inventory and high demand, you may need to offer more, waive contingencies, or add incentives. If the market is cold, with high inventory and low demand, you may have more leverage, flexibility, and options.

By using data to back up your offer strategy, you can make a more informed, confident, and persuasive offer that aligns with your goals and the market reality. You can also communicate better with your agent and the seller, and justify your position and expectations.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?