By: John Jennings, III BRE#01982171
There is a great deal of speculation regarding how to make an offer for a home. Buyers are concerned with overpaying. Sellers hesitate to counter low offers. How does a buyer make an offer on a house that will be accepted? Here are four guidelines to follow.
Remove Emotion from the Equation
Buying a house can be an emotional ordeal. In fact, I had a client tell me the other day that purchasing a home is like falling in love. She said, “I can’t simply buy any house. I need to find the right one.” While I agree that the home should meet your wants and needs, it is essential to make an offer that is likely to be accepted. To do this make sure you are operating based on facts and current market conditions.
Know Your Budget
I cannot stress enough the importance of knowing your budget. The easiest way to create a budget for your future home is to get pre-approved by a local lender. During the pre-approval process the lender will tell you 1) what price range you qualify for 2) the amount of money you need to buy the home and 3) what programs and loan types work best for you.
Look At Comparable SOLDS
The most scientific way to determine a fair price for a house is to look at what has recently sold in the area. You want to compare similar homes to similar homes. If three bedroom two bathroom homes are selling for $200,000 in your area, the practical thing to do is offer $200,000. If you offer too little, the house will be sold to someone else.
Listen to your Realtor
Markets vary from location to location. What works in San Francisco may not work in Coalinga. Therefore, it is impossible to provide absolutes when it comes to negotiating the purchase of a home. This is where your local Realtor shines. If it is common practice for sellers to contribute towards a buyer’s closing costs, your Realtor should know that. If the home is overpriced, your Realtor should be able to tell you that and show you why. A local Realtor is a powerful resource. Make sure you chose to work with one you trust. If you follow their advice, the chances of buying the home you fell in love with increase dramatically.
John Jennings, III is a licensed Realtor® who works for Mid State Realty in Coalinga, CA. John can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. and (559) 970-4312.
