MUCH SHOULD YOU OFFER?”
find the house you want, it is time to act. How do you know how much to offer
the seller? Although everyone likes to get a bargain, every transaction is unique
and there are certain factors to consider in each potential purchase. Here are
some things to consider:
RECENT COMPARABLE SALES: What price has this type of property sold for
in the recent past? Can you see a trend in the local area that would justify an
offer in a certain amount? Remember that the seller will be going to the same
sales data in order to evaluate your offer. If your offering amount can be backed
up by solid market data, you will have a better chance of having your offer accepted.
DEMAND FOR THIS HOUSE: Some properties have no one else interested
at the time you make your offer. This situation is to your advantage because the
seller doesn’t know when or if another offer will come along. If the house
you want is in great demand, however, you could be involved in a bidding war regardless
of what the market value may be. Your best strategy may be to offer more than
the seller is asking. This will often get the house when competing against someone
else who thinks a full-price offer is sufficient to win the house from you. Offering
a high earnest-money deposit also helps strengthen your position. Another good
strategy is to obtain a pre-approval from a mortgage lender prior to making the
offer, so the seller is assured in advance that you will be able to qualify for
the loan amount you will need to complete the purchase.
ADVICE: The purchase of real estate is a major financial decision
for all of us. Use the services of a Realtor® when you are buying real estate.
Realtors know the present market and the past sales history of similar homes.
They can give you the facts.