Here is our second in the series of home buying tips: What is the science and art of making an offer on a home?
Your opening offer should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller.
A lot of people think they should go lower the first time they make a bid; it all depends on what the market is doing at the time. You need to look at what other homes have sold for in that neighborhood and you want to get an average price per square foot.
Sizing up a house on a price-per-square-foot basis is a great equalizer. Also, see if the neighbors have plans to put up a new addition, a basketball court or tennis court, or something that might detract from the property’s value down the road.
Sellers respect an offer that is an oddball number and are more likely to take it seriously. A nice round number sounds like every other bid out there. When you get more specific, the sellers will think you’ve given the offer careful thought.
On Your Team Helping You Find and Buy The Perfect Home For You,
The Spica Real Estate Team