Buying a house is filled with difficult moments.
One of the most difficult moments in the home buying process comes after you’ve found that perfect house.
Now you have to decide how much to offer. You’re faced with a key question: what is this home’s real value? And, of course, the other half of the equation: what will the owner accept?
An experienced real estate agent has probably already supplied you with comparable properties or “comps”. These are properties similar to the ones you want to buy that have sold recently and are comparable in terms of size, features, location, and condition. Looking at these comps with your agent will help you get a good feel for the market and your agent should be able to help you understand how your prospective home measures up.
According to market statistics, most homes sell for 5-6% below the asking price (national average), which means that most owners set their listing prices higher than what they expect to receive at closing. And many buyers, knowing this, offer less than the listing price as a first offer, expecting the seller to be open to negotiations on the final sale price for the home.
Let’s say a home is listed for $350,000 with you giving an initial offer of $325,000 with the hopes of not offering more than $337,000.
You should always be mindful that more desirable homes (and locations) might attract multiple offers. This could result in your initial offer being too low, and very well could be the difference between going under contract and missing out on your dream home. The inverse of this is also typically true. A home that’s sitting vacant and has been on the market for a long time might mean you have the ability to be more aggressive (meaning a lower offer in this case) with your initial offer.
Questions? Contact Marble Falls Realty Group today!