Here are some guide questions to help you make an educated and appropriate offer that the seller will gladly accept.
In a seller’s market, however, it’s typically much harder to go below the asking price because inventory is low and multiple buyers are interested in the same properties. Since sellers usually get multiple offers, you might find it difficult to negotiate. If you want the property, it’s best to offer the list price or even go above the asking price if you can. Knowing the current inventory in your area is an absolute help when deciding how much to offer.
If a property’s listing price is already noticeably higher than comparable homes, don’t be afraid to submit a low offer. Your agent is your best partner when it comes to breaking down recent sales and justification for your offer, giving more room for a productive negotiation.
Information on how long a house has been on the market can easily be found on most real estate listings. If not, your trusted real estate agent will have access to this information through the multiple listing service. You can ask them to pull this data for you, and then use it as a reference as you write your offer.
If you’ve found a fixer-upper that’s attracted little to no buyer interest, you might feel confident making a lower offer. It’s an investment risk, so you’d want to make sure you’re expecting a deal. Moreover, if the roof, furnace, windows, central heating and air conditioning unit, and other major home systems are nearing the end of their lifespan, know that they’re the most expensive to replace. Remember to keep those things in mind when determining your offer.
Your mortgage pre-approval provided by your lender, in particular, will give you a ballpark figure that you can keep in mind as you write a purchase offer for a home. This is so you won’t make an offer that is above your budget or what you are qualified to borrow, which can lead to financial strain.
Maybe you’ve been house-hunting for a while now, and you’ve finally found what you think is the perfect home for you. This property meets your needs and the asking price is well within your budget. It might be worth it to consider offering exactly what the seller is asking for, or even a bit more—an offer that the seller can’t refuse, to show that you’re a serious buyer and you want the property more than anything else.
Aside from guiding you through the offer process, they can discuss your options and recommendations based on current market conditions, the home’s conditions and features, and comparable sales, all while considering your preferences and budget. You can easily take the guesswork out of the process and negotiate successfully when you find a knowledgeable and dependable agent.
