This is a continuing blog post for buyers starting with So You Want To Buy A House. Now What ???
Congratulations on finding a home in your price range that meets your needs. How much should you offer? Your decision on how much to offer should be in consultation with your Realtor, who should have already done some basic research prior to making the showing appointment. She/he will now do a more extensive analysis and look at comparable houses in the immediate area and make a recommendation based on a number of factors and Market Value.
The definition of Market Value is how much a person is willing to pay for a house just like, or as close to the one you want. Of course your Realtor will try to get the lowest price possible, but you should expect to achieve a contract price at Market Value.
Another factor you need to take into consideration is what kind of market you're dealing with. If you are in a buyers market, that means there a many houses to choose from and not enough buyers to buy them all. A buyers market gives you an advantage in negotiating and often times you can offer considerably less then the asking price and negotiate a substantial savings off the asking price.
In a sellers market, there are many more buyers looking to buy and very low inventory of homes for sale. The seller has the advantage in negotiating. Also, in this situation, there are multiple offers being made on a home and the final sales price may end up being higher then the original asking price.
Low-balling is not a good idea in either market. Low-balling is when you offer an unreasonably low price. You run a high risk of insulting the seller which results in the seller not only saying no, but refusing to consider ANY offers from you. Listen to your Realtor who's job it is to give you sound advice based on years of experience.
There are many items in an offer that can be negotiated and in consultation with your Realtor, you will submit an offer to a seller for consideration. Be prepared to negotiate back and forth until both sides come to an agreement.
It is also a good idea to ask your Realtor for a copy of a blank contract so that you can review it a head of time and understand all the sections prior to making an offer on a home. It will make the offer process go a lot quicker and smoother.
Next in this series will be: Your Offer Was Accepted. Now What ??? Look for it in a few days.
If you live or are moving to the Tampa Bay area and need to buy a home, call me and lets talk about your wants, needs and dreams regarding home ownership.
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