How to Determine How Much to Offer on a Home for Sale

Once you find that dream home, be sure you've taken steps to make an informed offer.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Local Newspapers
• Real Estate Agents

1. See as many homes for sale in the same neighborhood as you can.
2. Check recent sales in the local newspaper.
3. Get a list of recent sales in the area from local real estate agencies.
4. Consider resale value - a three-bedroom home is usually more desirable and easier to sell than a two-bedroom home.
5. Decide on the top price you are willing to pay, and plan to offer less than that amount (typically 5 to 15 percent less, depending on the market and how long the home has been for sale). Leave yourself room to negotiate.
6. Consider items other than price, such as seller credit toward closing costs or down payment, repairs and warranties.

Tips & Warnings

• When comparing recent sales of other homes in the area, remember to compare homes of similar size, based on number of bedrooms, number of bathrooms and square footage.
• Start low. You can always increase your offer.
• Adjust your offer to the market. Homes for sale in a seller's market (rising prices, low inventory) provide less bargaining power. A buyer's market (falling or stagnant prices, high inventory) allows for more bargaining room.