In Lamorinda’s fast-moving real estate market, selecting an offer price can be challenging for our clients, especially when trying to secure a desirable property that meets the needs of a larger group of buyers. Here's a breakdown of our approach:
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Market Analysis

We conduct thorough market research to understand recent sales prices ("comps") of similar properties in the area and discuss this at length with our clients. This provides a baseline of what similar homes are selling for.

Assessment of Property Value

We evaluate the unique features and condition of the property in question and discuss them with our clients. Are there any upgrades, location advantages, or other factors, such as rarity, that could justify a higher price compared to recent comps?

Recent Sales Patterns

We calculate the list price vs. sales price differential of like homes. Is there a pattern of how much they are selling over list price. This is always a great discussion topic too.

Competitive Analysis

We utilize our seasoned relationships and market expertise to understand the level of competition for the property. If there are multiple offers, it's likely that the winning offer will need to exceed the list price and recent comps. Yes, this means our recommendation may be to set the new high comp for this home in this real estate market. On the other hand, when evaluating a client’s goals, if we have concerns that this is not the perfect match for them, our guidance may be to set a maximum offer price and stick with it. Even if it means they don’t secure the house.

Budget and Affordability

Considering our buyer’s budget and financial situation is always top of mind. Does the buyer have a slush fund or rainy-day plan to cover an appraisal hiccup? We believe it's crucial not to overextend financially, even in a competitive market.

Emotional Attachment and Value

Sometimes, buyers are willing to pay more for a property they particularly love or believe has long-term value beyond just the price tag. However, it's essential to balance this emotional attachment with financial prudence. If our buyer plans to stay in the house for many years, the decision is less risky than if they communicate there is a chance they may need to move in the next five years.
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As market leaders and makers, we are here to guide our clients through each step of the buying process. We hold the big picture for our clients, which guides our thinking and our actions. Together, we will help formulate a competitive offer strategy.