How Much Should I Offer on a Home?

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Real Estate

How Much Should I Offer on a Home? 
BY BETH ATALAYReal Estate Broker/Owner with Cam Realty and Property Management
February 13, 2018 01:37 PM

How Much Should I Offer on a Home?

Buying a home is a major event in our lives and we want to make sure we’re doing everything right and not overpaying for our dream home. How do we know what that price is? It’s really not that complicated but time isn’t on your side as a buyer, just don’t take too long to make a decision.

I’m hoping you are working with a local, knowledgeable Realtor you trust. Keep in mind, a Real Estate agent is there to guide you, the final decision is yours.

Here are some myths on how much you should offer on a home;

-Cash is king, cash buyers should offer “x” amount lower than list price
-Always offer less than asking price
-Don’t ever pay the asking price
-Call the listing agent directly to pay a lower price for a home
-Google the answer
-Ask uncle Joe, he’s been buying homes for years
-The house has been on the market for two months, sellers must be desperate to take just about anything
-Always ask for seller concession

As a buyer, it is important for you to get pre-approved by a lender if financing so you know exactly what you can pay for your dream home. Most sellers wouldn’t even entertain your offer if you do not have a pre-approval letter along with the offer. If you haven’t already, search, interview and find an agent to assist you with your home purchase.
Some buyers look at homes $50,000-$100,000 over their approved credit thinking they can pay considerably less than asking, this is not a good tactic at all, you’ll be opening yourselves up for disappointment.

-Making an Offer- your agent should be pulling comps to see what the similar homes are selling for to determine a fair market value of the home you wish to make an offer on.

-Best and Final- If there are multiple offers on the home, you should reconsider offering less than asking. I am currently working with a buyer, she asked me to offer $120,000 less than asking knowing there were multiple offers. This is an REO and fair market value is close to $600,000. Guess what? She didn’t get the house.

-Do you really want the house? If you really want to own the home, be fair. Be fair with your offer when it comes to price as well as the inspection. Asking for things like removing nails from the walls or replacing a dead plant can kill the deal.

Lastly, when it comes to buying or selling a home and how much you should list or pay it, don’t believe everything you read online, instead, talk to a professional.

How Much Should I Offer on a Home?