Have you found a home that you would like to make an offer on? But are not sure how much you should offer without offending the seller and still get the best deal you can possibly get? This question is one that puzzles most everyone that has ever bought a home. So let's talk about what consists of a "fair offer price".
You already know the seller's asking price so that is the easy part. But how do you go about figuring out what to offer? Here are a few steps you can take to determine a fair offer price.
1. Look at what recent homes have sold for in your area. Don't look at what they listed their home for but what they actually sold for.
2. Remember as you are looking at this data to also look at the condition of the homes, the improvements that were made to those homes, the current conditions of the market and the reasons for the sale of those homes. For example, was the seller desperate for the sale etc. as this can play a major role in the sales price and can skew the numbers if you are not careful.
3. Check the current competition in the area. Are the comparable homes close to the one you are looking at, is the home comparable in square footage, the number of bedrooms and bathrooms. Is the garage the same size. Is the property lot the same size. Also, look at the type of home it is - is it the same type of construction. If it is a tract home with many other exact same homes in that area, you will be better able to compare it against an exact match for the most part.
It is really important at this point in the home buying process that you sit down with your realtor and go over all of this information. Your realtor knows the market inside and out and can advise you on how to put together a fair offer price. You really don't want to do this without the help of a licensed professional. Your realtor has access to resources that you don't to help determine what should be factored into a good offer. Remember, if you get this step wrong it could cost you thousands of dollars over the life of the loan. So talk to your realtor today.
Thank you for Reading.
The Inman Team
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