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What You Should Know About Making An Offer On A Home

People looking for home buying tips often ask how much they should offer for a home that has caught their eye. They want to know what the standard is in making an offer. How much below the asking price can they go? To be honest, there are really no set home buying tips on this subject.

If you have purchased vehicles before you know that there is the manufacturer’s suggested retail price and an invoice price on cars. This is not the case with homes. We wish it were simple and you could see the MSRP on a home. But, it just does not work that way. This means there is no standard to go by when it comes time to make an offer on a home. The home and the property it stands alone. It is up to you to decide what you think it is worth and make an offer.

Not having any standards to go by leaves many home buyers in a quandary. They scratch their heads and wonder why two homes that are in the same neighborhood, that are similar in size, that have basically the same amenities are priced thousands of dollars different. Well, there could be a whole hosts of reasons why Property A is priced at $135,000 and Property B is priced at $149,900.

Property A could be on the market by someone who needs to relocate out of state within two months. Property A could be on the market by someone who is expecting another child or who is going to be having a senior come live with them. This seller needs to upsize their home fairly quick. This could be one reason their home is less expensive.

On the other hand, Property B may have just installed a new roof or plans to sell the home furnished.

There could be any number of reasons why two homes that are pretty similar have varying prices. One of the best home buying tips you will ever receive is to find out why the homes are priced differently. It could just be that the owner of Property B has great expectations! Or, it could be that Property B is over a city line and Property A is not. This would mean that the children of Property A would have access to city schools, whereas the children who live in Property B would be going to a county school.

Find out what the differences are to see if the price is worth it. Don’t speculate on why the prices are different. There is no need to pay more for a home in a particular neighborhood if there is a similar home two or three houses down that is priced thousands of dollars less – unless there is really something special that makes the more expensive home well worth the extra cost.

Many people price their homes above the dollar amount they would take for the home. Remember, you can always give an offer that is lower than the asking price. In fact, it is expected from the seller. If your offer is turned down, you can always raise the offer. However, you would not make an offer and then turn around and make a lower offer on the same home. Work with your agent. Place a low bid on the home and see what happens. Start out asking for one to two percent lower than the asking price to see what happens.

Remember, that any home that you are thinking about purchasing should be inspected before you ever sign on the dotted line. Who knows, the owner who has their home priced lower may have a home that is ridden with termite damage? You should know everything there is to know about a home before you buy it.