What to Offer on a Home?

What to Offer on a Home?

Purchasing a home can be the most major financial event in your life. Given that, you want to ensure you are doing everything you can to avoid overpaying for your dream home. It’s not that difficult, but unfortunately you do not have a long time to decide. What is the best price to offer that maximizes your value while, at the same time, makes a fair offer to the seller? If you are working with a local Real Estate Professional who is knowledgeable and you trust they can assist you in arriving at the right number. These professionals are there to make recommendations to you based on their experience, the final decision on what to offer is your own.

8 myths on home offers:
1.Cash wins.
2.When making a cash offer you should offer a certain percentage LESS than the list price.
3.Never, ever pay the full asking price.
4.Contact the Listing Agent directly for the ability to pay a lower price.
5.Internet search.
6.Ask a relative. They have purchased homes before.
7.If the listing has been on the market for some time, the sellers must be desperate and will take any offer.
8.Ask for Seller Concession.

Getting Pre-Approved by a lender (if you are financing) is an important step to take when you start entertaining purchasing a home. It lets you know exactly what you can afford for your dream home. Also, most sellers won’t even entertain your offer if you do not have a pre-approval letter. Occasionally, buyers will look at homes up to $100,000 over their approved credit thinking they can offer much less than the asking price when they submit their offer. This is likely to fail and cause disappointment for you. If you don’t have an agent already, do yourself a favor and search, interview, and locate a local Real Estate Professional to assist you.
• The Offer – A Real Estate Professional has access to tools which can assist you in determining the fair market value for the home you wish to make an offer on. Having your agent pull comparable sales within the area gives you meaningful data on which to base your offer.
• Best Offer, Final Offer – Are there multiple offers on the home you are interested in? Don’t be tempted to offer significantly less that the asking price. We recently worked with a client that offered FAR less than the asking price of the home given that there were multiple offers on the table. Long story made short, they didn’t get the house.
• Be Fair – If you really want the house, be fair with your offer. This not only applies to the pricing, but also the inspection. Asking for too much movement with regards to the price or items found during a home inspection can kill the deal.

When it comes to buying or selling a home, or how much you should offer or pay for it, don’t believe everything you read online. Talk to a Real Estate Professional!

Happy House Hunting!

-The FMT-


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