You’ve
been out house hunting for weeks and you’ve done all your research and
now you want to put in an offer to purchase the home of your dreams. So
how much do you offer the seller?!! And is it really how
much you offer or how you offer it?
Reasonable Market Price
Before doing anything else you need to
know what a reasonable market price is for the home you hope to buy.
Have your real estate agent run a Comparable Market Analysis for you on
similar homes that have sold in the last year in your target
neighborhood. Although an appraiser will only use the last six months of
comparable sales when figuring appraisal value, it is helpful to have a
more overall trend for the neighborhood to determine that prices are
rising and that your investment will be protected in the long run.
To arrive at a reasonable market price
you and your agent will be comparing the condition, location and
amenities of similar homes that have already sold plus the
current market competition of other homes for sale in the area.
Your Price
Then you must figure out what YOU are
willing to pay for this home. If you are willing to pay market value or
more for this home because you don’t want to risk losing it, please let
your agent know up front! Most good agents will try and negotiate a
below market sales price for you because they want to please you and
retain you as a future client. But only you can determine how you might
feel if you lost this home to another buyer for a few thousand
dollars!!! If you want a deal be sure to tell your agent that, but if
you want only this home, tell your agent that too! His
negotiating tactics will depend heavily on this information.
