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.
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Instructions
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See as many homes for sale in the same neighborhood as you can.
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Check recent sales in the local newspaper.
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Get a list of recent sales in the area from local real estate agencies.
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Consider resale value - a three-bedroom home is usually more desirable and easier to sell than a two-bedroom home.
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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.
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Consider items other than price, such as seller credit toward closing costs or down payment, repairs and warranties.
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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.
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Comments
View all 6 Comments-
Lorinda Ward
Mar 16, 2008
This is great advice! Anonymous, I feel bad that you feel that way about agents, I am a very honest and reliable Realtor, if at anytime you need any questions answered please do not hesitate to send me an email. -
Lorinda Ward
Mar 16, 2008
This is great advice! Anonymous, I feel bad that you feel that way about agents, I am a very honest and reliable Realtor, if at anytime you need any questions answered please do not hesitate to send me an email.
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Nov 22, 2005
Agents may not always be trustworthy! Check your agent's background before you decide to work with him/her. Make sure s/he is honest, willing to work hard for you. Some bad buyer agent will try to cheat you to get higher selling price for more commission!
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Nov 22, 2005
Be aware of the market, because if it's a seller's market and your home is in a prime location, bidding low may lose you your house to another bidder. Be aware of how long it's been on the market. If you love the house, be willing to pay for it.
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Nov 22, 2005
Your realtor is a "buyer broker" in most states. She can do an informal market analysis for you at no charge to give you information about recent, similar sales and on-market properties.
