When buyers make offers it pays to focus on what matters most. Some buyers and their agents make the mistake of relying on what I simply call stupid negotiation tactics. These just weaken your position and take the focus off what matters most, which is putting pressure on the seller to take your offer. A common mistake I see is when buyers and their agents look on line for posted values and then use this figure to justify their offer. I often hear comments like “On zillow it says it’s worth this” or ” The auditor only has a value of ..”
A good buyers agent will have accurate information from the mls system to determine the value. This information is more detailed and relevant plus has a human element to read into the nuances which can impact value. Such as;
- Does it have a finished basement
- Quality of the finishes and upgrades
- Landscaping upgrades and patios
- Lot premiums or issues that take away from value like power lines
Zillow and the auditor don’t go into the home and aren’t looking at all of these factors. Zillow uses a formula approach, which is a great way to see the relative value of a home compared to others in the community. The Auditor isn’t even trying to determine the market value, they just appraise the home only for tax purposes. Using these as reasons for you offer is technically wrong and will just make it that much harder to get the best price possible.
When negotiating the idea is to exert pressure and not divert attention with items that don’t truly matter.