How much should we offer on the home?
You have just viewed a home that you can see yourself living in. The time has come to place an offer on a home in hopes that the seller will accept and you can move one step closer to owning your dream home. The question now is, how much do you offer on the home?
The decision on how much to offer on a home is yours and yours alone to make. However there is help available from your real estate agent if you want it and ask for it. In addition to the help your agent can provide there are some things you will need to consider when deciding on the offer price.
Buyer’s market analysis
- This analysis will include information on what homes in the area have sold for within the past few months plus provide you with information on the homes currently for sale and how they compare to the home you are interested in.
- You may also be able to find out what the seller paid for the home, what the original list price was and how many if any price reductions the home has received since being listed.
Buyer considerations
- The seller disclosure should give you information on recent repairs and more importantly issues and concerns that you will need to consider when making an offer. An older roof or A/C-Heating unit will influence how much you offer on the home.
- Are you in need of closing cost assistance from the seller? If you are going to ask the seller to help you pay all or a portion of the costs involved with financing the home, you will need to consider this when making your offer. Any concession the seller agrees to pay reduces the net they will receive from selling their home.
Of course the seller will have the right to accept or decline any offer less than full price. If you do not want to lose the home to another buyer then making an offer at or above list price should be strongly considered.
How much you should offer on a home? How much do you want the home? Are there others for sale that you would be equally happy to purchase? Is this the best home you have viewed since starting your home search? When you find the perfect home the decision on how much to offer will be clearer.