Making an offer on a home is a delicate process. Here’s how you should go about it.
I often get asked the same question by buyers who are unaware of what a home’s value really is. They ask me, “How much should I offer on this house?” They love the house and don’t want to lose it, but they don’t want to overpay for it, either.
One of the first things I do after going through the home a few times is finding comparable properties in the neighborhood. I take a look back at least six months to determine what similar homes have sold for in the area. I look at the house like an appraiser, comparing its features and condition with the other homes that have recently sold.
Let’s say a home is priced at $300,000. If you try to apply a percentage to that and say you’re going to offer 5% or 10% below asking price, you could end up paying more than you need to. What if the home is already 10% overpriced? You’re not really getting a deal in that case. By knowing what similar homes in the neighborhood have sold for, you will be able to make a valid comparison and a fair offer.
If you’re going to live in the house for seven or more years, don’t let the price keep you from making an offer. If you really love the house, you should go for it. In the long run, you’ll be significantly happier with the house you love than a house you had to settle on because of budget constraints.
If you have any questions for me about this topic or anything else related to real estate, give me a call or send me an email. I would love to hear from you.