Q & A with Dottie Herman

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Q1 - I recently put my home on the market and we just got our first offer. It was about $400,000 below our asking price. We feel the home is priced competitively and do not understand why we received such a low offer. Should we bother to counter, or just decline their offer?

A - There are lots of buyers out there who are looking to get a bargain. Their bidding strategy may be to start low and see what your response is. You might want to thank them for their offer and tell them that, while you'd like to engage in a negotiation, their opening offer is way too low. Alternatively, you may respond with a slight reduction from your asking price, which says in effect, you'd like to engage them in a negotiation, but you want to get as close to ask as possible.

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Q2 - We are currently having a bidding war on our home. We priced it a little low for the current market and we have 3 offers right now.  Are there other criteria we should look at for these buyers besides just the price? One claims it is an all cash deal.

A - Financial ability to close the deal is key.  All cash is always preferable because you can close quickly, but it is advisable for you to ask each Bidder to provide you with a Financial Statement accompanied by documentation. In addition, you should ask their permission to run a credit check on them. If your other 2 bidders are financing, have they been pre-approved for a mortgage, and do they have a Commitment Letter from that financial institution?

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Q3 - I am thinking of relocating to Florida. I would have to sell my home in Long Island, but I am unsure if I should rent or buy in Florida as I am unsure of the areas and intricacies of the towns there? Do you have a suggestion?

A - Until you know the areas and intricacies of the menu of options in Florida, renting is an excellent option. Many owners offer Rent with Purchase Options; and or Right of First Refusal, so that if you like what you're renting, you preserve the opportunity to buy it if the seller should decide to sell.

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Q4 - I have been searching with my wife for houses for about 6 months. We have found 2 that we like very much and are having extreme difficulty deciding. What can we do, or are there are criteria to figure out which house is right for us?
 
A - There is no perfect house, but the house and neighborhood you ultimately choose should satisfy as many of your parameters as possible. You might both start by making a list of non-negotiable priorities for the house itself and then the neighborhood. You can then see which house offers the lifestyle and more of the features you both want.

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If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com

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