The method
The Pre-Offer Five
The five questions Kate works through with a buyer before writing any offer, so the number on the contract comes from analysis rather than from fear of losing.
Why it works
There is no universal percentage to add to a list price. The list price is a marketing strategy and frequently not the market value, which means a buyer who adds a fixed percentage to it is compounding somebody else's guess. A buyer who can answer these five questions has a number they will not regret, whether they win the house or not.
The five questions
What have similar homes actually sold for recently?
This means sold prices rather than list prices, and recent sales rather than last year's. It also means similar in the ways that matter on this particular street, which is rarely the way a search app decides two homes are comparable.
How many offers is this seller likely to get?
The honest read on competition for this specific property, from how it was priced, how it shows, how long it has been up, and what else is available to the same buyer right now.
How unique is this property?
A home with no real substitute justifies a different number than one with four comparable alternatives on the market this month. Uniqueness cuts both ways: it also narrows the pool when it comes time to resell.
How important is this particular house to you?
Not every house deserves your best offer. Some do. Knowing which one this is, before the deadline, is the difference between a decision and a reaction.
What price would you be comfortable with even if someone else offered a little more?
The question that ends the bidding spiral. It sets a number the buyer can lose at without regret, which is the only kind of number worth writing.
The other half of the method is The Positioning and Demand Engine.
Keep exploring
Ready to make your move with Kate Fomina?