What Do I Offer?
There is a lot of advice about making offers; however, each transaction is different, each home and situation unique. There is no single formula.
At the time you feel you’ve found the right house, you and I have likely viewed multiple homes together. You have built a foundation from which to assess value and what a home may be worth to you. Your offer should be based on, among other things:
The Asking Price
Is it realistic, given market conditions and the prices of comparable properties that have sold recently in the same or similar neighborhoods? Is it unique in character and condition? I will help you weigh these considerations.
How long has this property been on the market? If the property is just new on the market, it’s logical to assume there is little to no negotiating room. Is there low inventory and high demand that may result in multiple bids for the property? Has the home just had a price change? I can help you assess this information.
How badly do you want the house? How many others like it have you seen? If another buyer outbids you, will you simply accept it or will you have regrets?
Conditions and Terms
Money down, waiver of inspections, waiver of mortgage contingency, quicker inspection timeframes, meeting the seller’s closing date.
Real estate is Locally driven. Work with an expert who knows the pulse of the marketplace. Some communities languish, while others remain highly competitive with low inventory. In desirable communities, a hot new listing will still receive multiple offers. In unique situations, the home may actually be ‘under’valued – the situation highly competitive. Although you never want to allow the fear of losing out to other buyers drive you to offer more than you think a house is worth – don’t lose a good opportunity by making a ridiculous offer based on a meaningless formula.
If there is any generic advice applicable to most situations, it is probably this: If you are serious about buying the house, make your best offer first.