Once a buyer has selected the right home to buy, figuring out how much to offer to buy that home can be daunting. Buyers are concerned that if they offer too little, they will risk insulting or alienating the seller. If they offer too much, they could overpay.
It’s normal for a buyer to want to lean on her or his real estate agent. In these instances, buyers often expect their agent to pull a figure out of a hat and hand it to them.
Shouldn’t a Realtor Tell Me How to Much to Offer?
While real estate agents can guide a buyer to choose the right number, don’t expect a buyer’s agent to name your price. As an experienced buyer’s agent I provide direction, market information and suggest a price range, but the final price is the buyer’s responsibility. Here are a few reasons why most agents will refuse to name your price:
Offer Was Too Low
If your real estate agent encouraged you to submit a lowball offer, and you lost the chance to buy that home because another offer came in higher or worse, because the seller refused to respond to the offer, you will instantly point the finger of blame at your agent.
Offer Was Too High
When an offer is immediately accepted, buyers often wonder if they should have made an initial offer for much less. When the agent insists on a price, and the seller signs without hesitation, buyers sometimes question whether their agent was working in the buyer’s best interest or working for the agent’s own commission.
It’s Not the Agent’s Purchase
It’s the buyer’s decision because it will be the buyer’s home. When the transaction closes, the buyer will make the mortgage payments and be responsible for maintaining the home, not the agent. Many buyers are much wiser than they give themselves credit for and are fully capable of selecting a price to offer.