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When you have been house-hunting for months in search of the ‘perfect home’, you will feel the thrill of excitement that comes when you find the home that fits your ideal. It is true that making an offer on a home is very exciting, but it can also be stressful as you navigate the process with the help of your real estate agent. When you want a particular home, you will want to move forward with the right approach so the seller is likely to accept your offer.
When to make an offer?
As soon as you find a home that you would be happy to buy, you should at least consider making an offer on it. It is always tempting to wait and view a few more properties just in case a better home is out there, but this can be risky. A good rule of thumb is that if you would be devastated to have another buyer snatch up this home, you should make your offer immediately.
If current conditions indicate a “seller’s market”, where homes stay listed for a very short period before going under contract, you should try to make an offer the day you see the property. That is especially true if the home has just gone on the market. On the other hand, it might be a “buyer’s market”. If there is a large inventory of homes that have been on the market for awhile, it is probably safe for you to take your time and come back to that house after seeing a few others.
Factors to base your offer on
Start by having your real estate agent run a comparative market analysis, which pulls information about recent sales of properties that are similar to the one you want to purchase. These comparable properties (often called comps) should be in the same neighborhood, have a similar number of rooms, and be of a similar size. Your real estate agent can help you adjust these sale prices to account for differences between the property you are looking at and the ones that sold. Differences could include the age of the home, number of bedrooms or bathrooms, condition, and home improvements.
You’ll also need to look beyond the hard facts of the home to get a sense of broader factors affecting your offer. For example, in a seller’s market, you may need to make an offer higher than the asking price because you are potentially competing with other buyers. You can also consider anything you know about the seller’s level of motivation to sell. For example, sometimes a listing will advertise that a seller is relocating, which lets you know they are likely to accept a lower offer.
5 key ways to make your offer appealing