How to Determine What to Offer on a House

How to Determine What to Offer on a House

Finding the home you want is just the beginning. The next step is crafting an offer that secures the home at a price you’re happy with. Before you submit an offer, it’s crucial to do some research to determine how much you should offer.

You want to get the home at the best price possible, while the vendor wants to achieve the highest price they can. This is all part of the negotiation game. Although price is not the only factor to consider in your offer, it is the most important.

Research the Comparables

Researching recent sales in the same area is the best place to start when determining what to offer on a home you like. When looking at these comparisons, ensure you are comparing homes of similar:

• Size
• Land
• Rooms
• Facilities
• Condition
• Age
• Position

It’s also important to compare with sold properties only, as they reflect the true market price. A property isn’t always worth what the owners want for it, but it is worth what buyers are willing to pay.

How Long Has the Home Been on the Market?

The number of days a home has been on the market, known as “days on the market” (D.O.M.), is another crucial factor. The longer the house has been listed, the more room there might be for negotiation. No seller wants their house to sit on the market for too long. However, do your research, as not all sellers are in a rush to sell.

What Condition is the Home in?

A move-in-ready home is likely to receive higher offers than a fixer-upper. While some people enjoy renovating, most buyers prefer a home that doesn’t require immediate work. Have a qualified professional check for structural and other serious issues that may affect your offer. Request a disclosure document from the vendor that highlights any potential problems.

Decide How Flexible You Are on Price

If your budget has little room for negotiation, consider using other tools to entice the seller by sweetening your offer. Options include:

• Different contingencies
• Length of settlement
• Repairs
• Rent-back options

Final Tips

Remember, asking the vendor's agent for advice on your offer may not be helpful, as their primary goal is to achieve the highest sale price for the vendor. However, asking the agent for what they think is a “fair price” can be a good idea.

Welcome Home

At JKL, we’re here to support you through every step of your home-buying journey. Our experienced team will help you research and craft the perfect offer, ensuring you secure your dream home at a price you’re happy with.

Experience our JKL real estate family. We’ll put the welcome mat out for you!