If you are ready to make an offer on a home, there are a few things that need to be addressed besides the price. Our Anne Winch Real Estate Team would like you to consider:
The Market
You need to look at the market and what type of inventory is available right now. Are you in a buyer or seller’s market? If homes are sitting for longer periods of time, normally that is a buyer’s market. However, if homes are being sold within days or weeks of being listed, you are in a seller’s market. All this will come into play when you put in an offer.
How long has the home been on the market?
If the home you are interested in has been sitting on the market for a while, it may be overpriced or there may not be a lot of interest in the home. You may be able to go in with a lower offer in the beginning to see if the seller is motivated.
What’s the competition?
If the market is “hot”, you may see multiple offers presented on one home over another. Always have pre-approval done beforehand so you can compete with other offers.
Pricing
Check with your real estate team to make sure the pricing is correct for the home that is being sold. Your real estate team can also do a market analysis to find home prices for specific neighbourhoods.
How much do you want this house?
It is hard not to let emotions get in the way when you find the perfect home. You need to ask yourself if this home is in your budget? Will you have to make any major renovations? If this home is newly on the market and there is other interest, you will have to come in close to asking price. If you really have to have this home no matter what, you may have to come in over asking price if there are a lot of offers on the table.
Offers are a reciprocal agreement. Make sure you are informed and knowledgeable about the home and the transaction. The negotiating should always be in concert with your real estate team. They can talk to the other realtor or seller to find out what may be driving the sale of the home beyond the price. Sometimes it is the occupancy date or it may be that they need to vacate the home ASAP for a home they have purchased.
What should I offer?
If a home has been on the market for around 2 weeks, normally the rule of thumb is that you can ask for 3-5% less than asking price. If the home has been listed for more than 2 months, you may want to try to come in between 8-10% lower than asking price. However, if it is a relatively new listing the seller will want as close to asking price as possible. As we mentioned before, if there is a lot of interest in a listing, then you will have to come in very close to asking price or more.
It is very important to always pick a real estate company you can trust to help you negotiate those real estate offers for you. Our Anne Winch Real Estate Team would love to help you find the right home. Give us a call for any of your real estate needs for purchasing, staging, or selling.