photo credit: Chad Jones – Gold Coast Real Tours
So you’ve found the house that you love and now its time to make an offer. In some states you simply have to set your price, in other states you need to complete a pretty thorough form. You’ll have to find out what your state requires, if you have a Realtor or a real estate attorney helping you out they will know all the ins and outs of your local requirements. If they don’t then, its time to give them the boot.
The real trick comes with knowing what price to set. The advertised price is a starting point. It’s basically what the seller wants to needs for their property but that doesn’t necessarily mean what the property is worth or what they’re going to get.
In a really tight market you may end up paying more than the asking price, especially if you have your heart set on that property. Today’s market is a bit different, some people just cannot sell their properties and that gives you a little more flexibility with price. You don’t want to insult the homeowner, but you do want to give them a fair price and cut yourself a little deal in the process.
To get a good idea of what the home is really worth, check out properties in the neighborhood. Ideally, you’ll find a similar home in the same area that sold recently and then you can find out the selling price. This information is available through public records, or your Realtor can find out what the price was.
Remember when you place your offer that the bargaining might not be over. It’s not uncommon for the seller to counter offer or reject your offer. Don’t despair, just keep dealing until you get a price that’s comfortable for everyone.