How Much Should I Offer When Buying a Home?
So you’ve found a home for sale that you really like? Congratulations! Now you need to figure out how much to offer. This can be a tricky calculation – making too low an offer may turn off the sellers and put you out of the running as a potential buyer, but on the other hand you naturally don’t want to overpay. A real estate broker with up to date knowledge of Madison home sales can help to guide you here, but in the end you will have to decide how much to offer. There are some important factors to consider when working out the amount of your offer.
Learn about the Market
Supply and demand play a leading role here. If you’re looking at a seller’s market, several buyers may be competing to purchase the property and the homeowners could well obtain their full asking price. In a buyer’s market, you can make an offer that is substantially lower. Check the “comps” to see how much similar homes have sold for in the past six months, and how the final selling prices compared to list prices.
Learn about the Sellers
Learn as much as possible about the homeowners who are offering the property for sale. If you can find out why they are selling, you will have a better idea of how urgently they’ll want to close a deal. For example, a well-to-do “empty nest” couple just beginning to consider the possibility of downsizing will be in less of a rush to sell than owners who either can’t keep up the mortgage payments and are trying to prevent their home becoming one more property on the list of Madison foreclosures or are carrying two mortgages because they’ve already bought a new home. Try to see how much they paid for the property originally. If they bought within the past few years and the house has not appreciated much since, that can help determine your offer.
Learn about the Home
There is one very wise question to ask about the home itself. How many days has it been on the Madison Wisconsin Home Sales market? If the For Sale sign has been up for longer than thirty days, the sellers will probably be more open to negotiation. Find out whether there are any issues that are making the house difficult to sell. What is the condition of the property and will it need extensive repairs or remodeling? Last but not least, how well would this particular house fit your needs? If you find a property that is just right for you and your family, you may want to make a higher offer to avoid the risk of losing your dream home.