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

Video Transcript

"Determining how much to offer on a home for sale is a difficult task. I'm Richard Blake and I'm here to show you how to determine how much to offer on a home for sale. The first thing that you want to do is get the list of properties that have sold in the area within the last six months. Generally you're going to want to use properties that are within twenty percent of size of the subject property or of the property that you're going to be making the offer on. You can find out this information from your local real estate agent or brokerage. If you go down to the office there and tell them you've got a property that you're interested in, generally they can break it down for you and give you a list of properties that have sold recently in that same neighborhood. Most importantly you're just going to want to make sure that they are real comparables to the property that you are going to make the offer on. Meaning make sure that they're within one mile radius of the property you're making the offer on. And make sure that the square footage is similar in size. Like I said before about twenty percent of the size meaning, if it's a one thousand square foot home that you're interested in. Make sure that you're looking at homes that are twelve hundred square feet and no less than eight hundred square feet. As well as homes that have vary similar amenities within them. Such as pools, garages, jacuzzis, lot sizes, water front versus not water front, all these items are important to factor in. And once you have an average of those properties that are sold you can kind of use that as your baseline as what the value of the is that you're making the offer on. And that way you're sure not to offer too much or too little. Once you have that average price then at that time you can kind of judge whether or not your market is strong or soft buyers market or sellers market. If there's quite a bit of inventory in the neighborhood you know that you can go ahead and take a little bit off of that price of what the current market value is. Because they're going to be a little happier to look at a offer that coming in because there's so much competition they probably haven't had a lot of traffic in there. So you're going to want to start off making your offer a little bit lower than what you normally would. Again these are just a couple of ideas how to determine how much to offer when making, I'm sorry. How to make an offer on a home that's for sale. I'm Richard Blake and you have a great day."