When you’ve found that special house that you want to call home, you’ll probably feel excited and a bit nervous. We are ready to help you through this important time. However, before we get into writing a contract on that home, there are a few more things that you should take into consideration before preparing your offer.
The amount you offer for your potentially new home, should be determined after considering the factors listed below:
The price of homes in the area that have approximately the same features as the home you selected. You can obtain this information by reviewing recent sale transactions with your real estate agent.
The price of comparable homes in the area (supply).
The number of buyers looking for comparable homes in the area (demand).
The condition of the house and any repairs or improvements needed. Your offer can acknowledge these items and be adjusted depending on whether the buyer or the seller will correct them.
How long the home has been on the market. If a home has been listed for sale for an extended period of time, the seller may be willing to entertain offers that are less than their original expectations.
Has the price already been reduced? If so, this may be an indication that the seller has already acknowledged that the original asking price was unreasonable, and has adjusted their expectations.
Is the seller considering other offers? If you find yourself in competition with other buyers, you will need to make your offer as attractive as possible. This may require you to offer a higher price, make a larger down payment or be more flexible with the closing and possession dates. Keep in mind that you may not be aware that you are in a multiple offer situation.
Even though the items listed above lay a very good foundation for deciding on what you’re willing to offer for the home… there is really no rule to determining a realistic offer. Everyone has their very own unique situation and everyone puts their price on items no matter what they’re really worth. Naturally the buyer wants the best possible price, but the negotiations can be influenced by many factors.
After you’ve looked at the home’s features, asked questions, checked comparable sales in the neighborhood, and talked with your agent, you should have a good idea of what the home’s value is in the current market.
Next, consider what you can afford and make an offer that’s fair.
Most buyers and sellers negotiate on price, with both sides “giving” a little here and there until both come to an agreement. When the price is agreed upon, both parties will now initial and sign the “Sales Agreements”. Our skills are in negotiating a fair price for you… so use these skills to their fullest!