GreatWest GMAC Real Estate professionals are in the business of showing homes to homebuyers, but when clients find a home they love, they see the price, but often wonder how much they should actually offer.
If you are a homebuyer, and have wondered about the offer price process, there are several factors to consider before you write an offer. Circumstances can influence your decision about property value:
(1) Consider asking your agent to provide a valuation of properties for the neighborhood. Your agent can provide data about the average price for homes recently sold in that area.
(2) What is the price per square foot in the neighborhood? Are these prices per square foot influenced greatly by numbers of distressed property sales or foreclosures in the vicinity?
(3) What is property condition? Will expensive repairs be required to make it habitable? Is the home dated, or is it in move-in condition? You may lower the price per square foot on your offer, but if it is a foreclosure, the bank is likely to have already lowered value for its list price.
(4) Knowing average days on the market of properties in the neighborhood, can demonstrate that presenting an exceptionally low offer may have you losing out to a competing buyer’s offer. If the property is in an area where homes often sell with multiple offers, you may find yourself sitting on the outside of the desired home, watching another buyer moving in.
(5) The motivation of the seller may be an important factor in deciding how much to offer on a home. If the seller is relocating, and needs to begin a new job in a short amount of time, and activity on the property is slow, you may be able procure a great deal!
Good luck to you!
Written for GreatWest GMAC
by: Myrl Jeffcoat
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