Four Factors That Affect Your Offer Price

After a grueling financial preparation and a tiresome home shopping, finally you have found your new home, the home where you are going to spend a reasonable amount of your future. Next is the very important step, making an offer price on the home of your choice. The offer price you make should neither be too high and nor be too low. It has to be just right!

Easily said, but how do you make that ‘Just right offer price’ on the home you like? You have to consider four important factors before deciding the final offer price.

Here they are:
1. Property Condition: Check the condition of the home you like. Have a look at bedroom doors, door knobs, light switches, cabinets and other fixtures. That will give you an idea about the condition of the property and based on that you can arrive at an offer price. Also you have to compare the home you intend to buy to the ones in the neighborhood and rate yours relatively. Just decide whether your home is above, average or below the neighborhood homes. Inquire recent selling price of neighborhood homes and based on that and your home condition you can make a reasonable offer price to the seller.
2. Market Condition: Usually there are multiple offers on a home in a seller’s market and they will be mostly on the high side-much above the asking price. But in a buyer’s market, the properties remain in the market for a longer period of time. You can have more flexibility in buyer’s market and can negotiate with the seller. Based on the market conditions you have to make a reasonable offer price.

3. Home Improvements: Before making the offer price check whether any recent home improvements have been done. Ward off minor changes like new paint and a new carpet.

But if the owner has done considerable home improvements like addition of a new bathroom or a bedroom, basement renovation etc, you have take them in to account and make an offer price accordingly

4. Seller Motivation: An idea of how motivated the seller is will help you decide on the offer price. A seller who is relocating soon will be keen to sell the home, so would be ready for a lesser price. But a motivated seller will never allow you to knock down your offer price by a large amount. But don’t get deceived by advertisements that claim that they are motivated sellers. It may be just a trick to generate leads.

From major to minor, several factors affect the offer price. Consider these factors -property condition, market condition, home improvements, seller motivation- that affect your offer price and make a final offer. You can get the help of your real estate agent as well in this regard. But don’t forget to keep in mind the mortgage that you got pre-approved before making a final offer price to the seller.

You are NOW being invited to order the vendor’s product or order a Report which contains a Code to link you to a Free website which will make you thousands of dollars. More info here Creating an Affiliate Website that Sells