How to determine what to offer on a house

12 January 2021

How to determine what to offer on a house

If you think finding the right house to buy is hard, wait until you have found one and are trying to determine how much to offer. Below are three factors to help you determine the right price to offer on a home.

1. What do similar homes sell for?

Start by researching recent home sales in the area to determine the offer that fits the home you are looking to buy. You can use the following criteria to generate the comparables for the property you want to buy:

· Location and type of construction

· Square footage

· Bedroom/bathroom count

· Condition of the house

Pulling comparables will help to formulate acceptable sale prices that your offer should perhaps fall within. With your real estate agent helping you, accessing this information will be much easier.

2. What is the condition of the home?

Any price you offer for a home should reflect the condition of the home. For example, if it is a move-in ready home, be ready with an offer that is typically higher than that of a home that requires rehabilitation. Here are structural/functional issues you should check when evaluating the condition of a home:

· A damaged or sagging roof

· Foundation cracks

· Rusty plumbing

· Uneven floors

· Water stains on walls

· Pest infestation-related damage

Identifying these issues effectively can be a daunting task for you. So, let your buying agent request disclosures from the agent of the seller and do the inspections and reports professionally. This way, you won’t pay more than you should.

3. How long has this house been on the market?

As a buyer, it’s essential to set your offer price according to the amount of time the home has been on the market. So, the longer the time a home spends on the market, the lower your buying price and vice versa. Note that if you try to low-ball a newly listed home, the seller may ignore you immediately and focus on a better buyer.

Determining the right offer on your next house requires researching and asking the right questions. Get ample assistance from our reliable local real estate agents at House Estate Agents. Contact us today in any of our property sales and property management offices in Toowoomba, Highfields, Aspley and Springwood.