Most people looking to buy a house want to get the best deal possible? But how do you do that? Do you automatically offer something that’s below asking price, hoping to negotiate and meet in the middle. If you see a house you love, should you just offer what the sellers are asking or even more to ensure you get the house? These are tough calls to make. Fortunately, there are some things that can guide you on how to make the best offer.
What’s the market like?
One of the biggest factors in making an offer on a house is the current condition of the real estate market. If homes are flying off the shelf, selling within days of hitting the market and getting multiple offers, then it’s probably a good strategy to offer the asking price or even higher. On the other hand, if the real estate market is slow and offers are hard to come by, you can feel relatively confident that an offer below asking price will get serious consideration.
How is the house priced?
Another factor in making an offer on a home is how the house is priced relative to similar properties. If the house has a price that appears to be at or below market value, then it makes sense to make a full-price offer. If the home appears to be priced higher than other comparable homes, then you should give serious consideration to making a lower-priced offer. Sometimes people simply stubbornly price a house too high. But in other cases, they may set the price high just to test the market and see what kind of offers come in.
What’s your personal situation?
Your personal situation also can be a factor in whether you decide to make a full-price offer or something less than that. For example, the house you are looking at might be at the absolute maximum price you can afford, so you might be unable to offer any more than that. Also, you might be willing to up your offer for a house that has things that are important to you, such a large yard or extra garage space.
There are a number of factors that can go into what you are willing to pay for a home and whether you should offer that much. Make sure to get advice from your real estate agent to ensure you are making the right decision.