So you're ready to go home. However, there is one problem. You do not know how much to offer. If your offer is too high, you can overpay and feel like you were tricked. If you bid too low, you risk offending the seller and watching it helplessly as your dream home slips through your fingers. When you sit down with your real estate agent and attorney there are five different factors that should guide your offer amount.
- Market Temperature – When there are more than buyers, then its usually a good time to snatch up a deal. However, if you are looking for a buyer, you are in an isolated pocket. Simply speaking, a buyers market is a good time to bid low, while a sellers market offers offers to be closer to.
- Recently Sold Comparable Properties – It is important to remember that your offer should always be lower or better than yours. The reason why is because your mortgage lender wants to do the exact same thing in comparing your appraisal value to the neighbors. You may want to overbid that you win the house you want.
- Your Agents Advice – If you follow my steps in the earlier chapter, then you need to carefully consider the guidance you receive from your real estate agent. Your real estate agent wants to know if it is reasonable and thus, more likely to be accepted.
- Sellers Goals – Sometimes Sellers Want to Get Rid of a Home Quickly and Make Their Home on the Market In either case your offer strategy would be different so you need to learn as much as possible about the sellers as you can.
- Your Goals And Mindset. You want to see homes on the market for many months. Your number one goal is about to make an offer. Your decision should be based on the numbers and facts and percentages based on your emotion and heart.
Source by Christoper Rivers