How to Decide What to Offer on a Home in Massachusetts
Once you find a home you want to pursue, one of the most important decisions is determining what to offer. The right number is not based on the list price alone. We look at recent comparable sales, current competition, the condition and location of the property, market momentum, and the seller’s specific circumstances to help you develop an offer strategy that makes sense.
In Part 4 of our Home Buyer Onboarding Series, we explain how we help buyers evaluate a property’s value and determine an appropriate offer price using comparable sales, current market conditions, competition, and the individual circumstances surrounding the home.
Start With the Property, Not the Asking Price
A list price is a marketing decision made by the seller and listing agent. It is not necessarily the same thing as market value.
Some homes are priced very close to their expected selling price. Others may be intentionally positioned to generate significant interest and multiple offers.
That is why we do not begin our offer analysis by asking, “How much over asking should we offer?”
We begin by asking what the property is actually worth in the current market.
If you are new to the overall buying process, start with our Home Buying Process in Massachusetts: A Buyer’s Roadmap.
We Look at Comparable Sales
Recent comparable sales are one of the most important tools we use when evaluating value.
We look for properties that are similar in meaningful ways, including:
Location
Size
Lot
Condition
Age and style
Renovations and updates
Number of bedrooms and bathrooms
Garage and other amenities
Overall quality and appeal
No two homes are identical, particularly in towns such as Concord where housing stock can vary dramatically.
The goal is not to find a perfect match. It is to understand the range of values supported by the most relevant recent sales.
Current Competition Matters Too
Closed sales tell us where the market has been.
Current listings help us understand where the market is right now.
If there are several attractive alternatives available in your price range, that may affect how aggressively you need to pursue a particular property.
If inventory is extremely limited and the home is likely to attract significant competition, the strategy may look very different.
By the time we reach this stage, we have usually already toured enough homes together for you to have a much stronger understanding of value.
If you have not read it yet, see our guide to [What to Look for When Touring a Home in Massachusetts].
We Consider the Seller's Situation
An offer is not made in a vacuum.
Whenever possible, we communicate with the listing agent to learn more about the seller’s priorities and the circumstances surrounding the sale.
That may include:
Whether the seller has a preferred closing date
Whether there are already other offers
The level of activity and interest in the property
Whether timing matters more than certain other terms
Any specific concerns the seller has expressed
We use that information to help structure an offer that is attractive without unnecessarily giving away value or flexibility.
Price Is Only One Part of an Offer
The highest offer is not always the strongest offer.
Sellers may also consider:
Financing
Down payment
Deposit structure
Inspection terms
Mortgage contingency
Appraisal considerations
Closing date
Flexibility around occupancy or timing
Other transaction-specific terms
A strong offer strategy looks at the complete package.
This is one of the reasons we spend time preparing buyers before they ever reach the offer stage. Our Buyer’s Guideexplains how each part of the process fits together.
We Talk About Risk Before You Decide
In a competitive situation, buyers sometimes consider making their terms more aggressive.
Before you make those decisions, we want you to understand exactly what each term means and what risk you may be accepting.
Our role is not to tell you how much you have to offer or pressure you into making an uncomfortable decision.
Our role is to give you the information necessary to understand the potential consequences of each option.
You ultimately decide which combination of price, terms and risk feels appropriate for you.
Do Not Let Competition Determine Your Value
Multiple offers can create urgency.
That does not mean another buyer should determine what a property is worth to you.
Before submitting an offer, we talk about the price at which you would still feel comfortable if you learned later that another buyer had offered less.
We also talk about the point at which you would be comfortable walking away.
Having those conversations before the offer is submitted helps separate thoughtful decision-making from the emotions of a competitive situation.
Your Earlier Preparation Pays Off Here
This is why the earlier stages of the buyer process matter.
During the initial [buyer consultation], we establish your goals, priorities, financing and search strategy.
When we begin [touring homes together], you start developing a real understanding of the market and what different homes offer at different price points.
By the time you are ready to make an offer, you are not evaluating the property in isolation. You have context.
That context allows us to make a much more informed decision about value and strategy.
Special Considerations in Concord and MetroWest
The Concord and MetroWest markets often require more nuanced valuation than neighborhoods where homes are relatively uniform.
Two homes with similar square footage may have very different values because of:
Road location
Lot quality
Historic character
Renovation quality
Age
School or village location
Septic considerations
Expansion potential
Overall setting
If you are specifically considering Concord, our Buying a Home in Concord, Massachusetts resource provides additional local context.
Our Goal Is Not Simply to Win
Winning a bidding situation feels good.
Winning at a price or with terms you later regret does not.
Our goal is to help you put together an offer that gives you a strong opportunity to purchase the property while still making sense for your goals and circumstances.
Sometimes that means being aggressive.
Sometimes it means walking away.
Both can be the right decision.
Continue the Buyer Roadmap
Start with the complete Home Buying Process in Massachusetts: A Buyer’s Roadmap.
Then review:
[What to Expect at a Buyer Consultation in Massachusetts]
[What to Look for When Touring a Home in Massachusetts]
And visit our Buyer’s Guide for an overview of how we work with buyers throughout the entire transaction.
Ready to Make a Move?
If you are considering buying a home in Concord, Carlisle, Acton, Sudbury, Wayland, Lincoln, Lexington, Weston or the surrounding MetroWest communities, we would be happy to help you understand the market and develop a strategy for your search.
Call us at 781.795.0502
Email us at info@tomandjoanneteam.com
Or contact the Tom and Joanne Team to get started.