There are few things as exciting in life as finally finding the perfect home for you and your family. However, the sticker price on the house you’re looking to buy isn’t set in stone. Immediately submitting an offer that matches the sticker price is usually not a good idea, especially if there aren’t any other interested buyers. You’ll want to submit a bid that the seller hopefully deems appropriate.
Getting Your Bid Right
Figuring out the right amount to bid is very important. You won’t want to overbid since you’ll want to save as much as you can on the house. Some properties may be overvalued by their owners, which means that even a bid that’s below sticker price may be too high. However, you won’t want to underbid either — if you bid too low, the seller won’t take you seriously and may even be insulted. The following are a few tips for determining how much you should bid:
- Figure out the market – You’ll have more room to negotiate if it’s a buyer’s market than if it’s a seller’s market.
- Look at comparable homes – Find out how much similar homes in the same area have sold for in the past six months.
- Look at sales trends – Find out if real estate in the area has been sold under, at, or above the list price in the past six months.
- Look into the seller’s situation – How long has the house been on the market? Does the seller need to move immediately? These impact their willingness to go below sticker price. Additionally, if they’re still paying off a mortgage, then they won’t go below a certain price.
Use these tips to calculate your offer price. To make sure you get your offer price right, work with a real estate agent by contacting us at Randy Lindsay today.