Here are the top six questions to ask yourself when putting together an offer. These questions will help you get to a winning offer quickly.
1. What is the fair market value of the home? Check out the competing homes in the area and what they are going for but make sure you are comparing similar properties. Then find out how much those types of homes have sold for in that neighborhood over the past 90 days.
2. How much can you afford? You must make sure that you make an offer within the range of what is affordable for you. You will want to also stay within your pre-approval range as well. Does that neighborhood have HOA fees that you need to consider? If so, then prepare your offer accordingly.
3. Do you have competition? Your agent will need to check with the listing agent to find out if there are any competing offers. Even in this market there are some properties and some neighborhoods in which multiple offers are received. If this is the case, your agent will need to find out how many offers are on the table. If there are several offers, you will want to submit a higher offer.
4. Has the listing been reduced? Check to see if the listing has been reduced and by how much. Are the sellers motivated? How long has it been on the market? Are there other homes in the area with similar price reductions? How many days were there between each reduction?
5. What is the condition of the home? You will need to get a home inspection and find out how much each repair is going to cost and reduce your offer to accommodate those repairs. The seller is probably already aware that they will need to reduce the price of the home if extensive repairs are needed.
6. How much do you really want this house? Of course you should not submit an offer that is way above the asking price or above the fair market value unless you have money to burn. However, you may want to submit an offer that is closer to the asking price if you are really anxious to get the seller to accept your offer and not someone else’s.
These are just a few questions that you should ask yourself before you sit down with your agent to put together an offer. Take the time to submit an offer that works for both you and the seller and before you know it, you will be living in your new home.