Two Tips For Making An Offer On A Home

Making an offer on a home you want is one of the most stressful moments you'll experience when buying a home, because whether a seller accepts your bid will depend a lot on the number you submit. However, coming up with the right price to submit to a seller is more art than science. Here are two things to consider when deciding how much to offer a seller on a home to ensure you land the sale.

How Long the Home's Been on the Market

The first thing you should look at when deciding how much you can offer a seller is how long the home has been on the market. In general, the longer a home has been sitting on the market, the lower your offer can be. Each month the home remains unsold is another month the seller must pay the mortgage and other expenses, so it's not unusual for homeowners to reach a point of desperation where they're willing to entertain just about any offer if it means getting rid of the home so they can finally move on.

Thus, use real estate listing sites, such as Redfin and Trulia, to learn how long the home has been on the market and then set your opening bid accordingly. For instance, it's pretty normal to take 5 percent off the price for a home that's newly listed. Thus, you could probably safely trim off 10 percent if the home's been sitting on the market for a couple of months, particularly if the homeowner is in a hurry to sell.

The Types of Homes in the Surrounding Market

Another thing you should consider is the types of homes for sale in the market. More specifically, if there are quite a few foreclosures and short sales in the area, then you may be able to get away with offering significantly less than the homeowner's asking price.

First, foreclosures and short sales drag down property values, so the homeowner may be in a hurry to sell to avoid being underwater on their mortgage. Second, even if the homeowner still has plenty of equity in the house, he or she has to compete with the cheaper prices those foreclosed homes are going for. So, they may be willing to entertain lower offers just to stay competitive.

It's important that you avoid going to too low, though; otherwise, you may inadvertently insult the seller and lose the opportunity to buy altogether. It's best to consult with a real estate agent before submitting your offer to ensure it fits the market and seller expectations.

For help making an offer on a home you like, contact a real estate agent.



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Understanding Real Estate Deals After thinking long and hard about what kind of home to buy, I began talking with a real estate agent about getting a deal that I could live with for the rest of my life. I really wanted to find a home and a deal that offered pleasant terms for me and my business, so I began focusing seriously on getting things done. It was amazing to me to see just how different various real estate deals were, and before I knew it, I was making some changes that would work for my lifestyle. Within a few months, things were a lot better. This website is all about understanding and applying real estate deals.

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