So you’ve found a home you love, now the big question is what should you offer? Do you offer asking price? Take 5% off, 10% off? There is no set formula. You need to look at several things before deciding on an offer price.

Find similar homes that have sold recently.

Compare them to the property you want to buy. Find homes in the same area, of similar size with the same upgrades. Is this home priced much higher than other homes that sold recently? In today’s market sellers are trying to take advantage of higher prices. You need to compare those prices to recent sales determine you offer and not just rely on their list price.

Look at the homes that are under contract.

Especially in an appreciating market like we’re in right now you can’t rely on sales that happened 6 months ago. Prices have been going up. It’s important to look at homes under contract to help determine an appropriate offer price.

How long has the home been on the market?

You want to consider how long the home has been on the market. One day, 30 days, 6 months. Have they recently dropped the price or do we expect the seller to reduce the price soon. If the home has been on the market for a long time you may want to offer less than if it has only been on the market for 1 day.

What else is for sale?

What else is available? What are your other options? Will it be the end of the world if you lose this home or are you confident we can find another one just as good? With the shortage of homes on the market this is an important consideration. If you would like to talk about real estate negotiation or any other aspect of the home buying process please give me a call or send a text to 512-791-7473 or send me an email.

Posted by Eric Peterson on
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