09 Mar 10

When Offering on Homes, Keep the Big Picture in Mind

In keeping with the theme of affordable homes in Branson, Missouri, let’s talk about making offers. Most buyers get very hung up on the sales price of the home, which is understandable but not very practical. For instance, if a home is for sale for $150,000 and there are other offers on it, make your best offer and call it a day. When you take a $150,000 payment on a 30 year amortization schedule, there is very, very little difference from $145,000. In addition, most people never retire their mortgages as they move more often than every 30 years, so the paydown of the principle is modest difference at best.

Now I am not saying that you should be making full priced offers in every situation, or even in the majority of situations, but in this tight market under $150,000 it is a good idea as you may end up with a lesser home if you offer low and don’t get the home. Most buyers don’t want to hear this, but there is high competetion and not much inventory at this price range in the Branson, Mo area, which pushes prices higher. I don’t see prices getting any lower as many homes have been sold at or less than it cost to build them…and there aren’t many builders with starts in this price range as they can’t make enough money when building them to bother.

Moral of the story: Be aggressive with your first offer so you get a quality home. The difference in payment is nominal, and is especially small when amortizing and paying down the home over 30 years. So if you are in the market for a home in this price range, give me a call at (417) 337 – 1627 and I’ll go to work for you.