How to Know What to Offer When Buying a New Home
One of the most frequently asked questions we get in today’s crazy market is “How do I know what to offer?” Our clients want to know if they HAVE to submit an offer over asking price. Or if they can look at homes outside of their price range?
There are a few things we always take into consideration before hitting SUBMIT on your offer. 💰
1. What have comparable homes in the area sold for recently? Is the homeowner’s asking price in line with the rest of the neighborhood?
2. How long has the home been on the market? If it's day one and there are already multiple offers, you might need to submit an offer above the asking price. But if it's been listed for a few weeks, you have more negotiating power.
3. What is the market like in the area? Is it a buyer's market, seller's market, or balanced market? Having an agent who understands the economic climate in your area is especially important today.
4. Are there any other offers on the table? Multiple offers change everything. If you really want the house, you'll want to offer a price that is your highest and best. What we mean by this is that if you don't get the house, you'll still sleep at night because you know you weren't willing to pay one dollar more.
5. At what price would you feel that you "overpaid" for the home? This is the best way to avoid buyer's remorse! Don't get caught up in the game of "winning" the house. Instead, make sure you're making decisions based on your needs and not just doing whatever it takes to win.
Our agents are here to help guide you through these factors and gather all the necessary information to determine the best price to offer. If you’re ready to buy a new home, we’d love to help you make the best purchasing decision possible. Feel free to use the chat function on our website or contact us here to get started.