Making Competitive Offers
When you’ve found the home of your dreams, and you’re ready to make an offer, it can be tricky to set your price.
It’s crucial to do some investigating first.
The location of a listing makes a big difference, for example. Even though one neighborhood in a city experiences a drop in property value, another community in that same city could be a seller’s dream.
Home offers aren’t challenging to make, but they do require care and attention.
Keep reading for some tips that’ll help you get the info you need to present the perfect price!
What Do the Comps Say?
Comps are comparable sales. In determining how much to offer on a house, it’s essential to check out similar sales (or comps) for homes that have sold in the same area within the last 6 months.
It’s not just about the geographical area in which they are located, though. You want to look at sales of houses that are comparable in size, condition, updates, bedroom and bathroom count, etc.
Your agent will help you determine comparable sales and make adjustments based on differences in things like square footage and condition.
Gather All You Can on the Home’s Condition
A property’s condition plays an essential role in how much to offer on a home. Fixer-uppers often provide excellent opportunities to save money but remember to consider how much work you’re willing to put into your new abode.
Check for structural issues that could cost a pretty penny to fix, such as:
- Cracks in the foundation
- Damage to the roof
- Pest infestation damage
- Outdated plumbing
Ask your agent to request disclosures from the seller’s agent. But remember that this report only includes documented issues known to the seller.
The more work a new home requires, the lower your price can be.
Check Square Footage Costs
When it comes to square footage, smaller homes are priced higher, and larger homes are priced lower.
Check the trends to determine if square-foot costs are declining or on the rise. You may be able to use that information to your advantage when you make offers on new homes.
How Long Has It Been Listed?
While you can’t assume that every seller is anxious to sell, it’s fair to say that the longer a home has been on the market, the lower your offer can be.
If a home has recently been put on the market, low-balling the seller could result in your offer getting rejected. Check with your agent to see how low is safe to go.
What Are Your Price Points?
How flexible are you? If you’re in love with a home, but you can’t afford to go too high, find another way to sweeten the deal.
One of the seller’s biggest fears is having to deal with demands after an inspection.
If you’re willing to be flexible on factors such as closing costs, contingencies, and repairs, your offer might be worth more than a higher price.
Home Offers Require Careful Thinking
Home offers require sound reasoning and research to find a price that works for both the buyer and the seller.
As long as you take into account a few essential details before you make your offer, finding the perfect number doesn’t have to be hard.
Just remember to ask your agent questions and use their knowledge and experience to help you land the home of your dreams.
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