So, you have done the hard work and found a house you would like to live in? It is now time to place an offer on the property. As a potential buyer, you must make sure you do not offer too much or too less. Here are some factors you must consider to determine the offer price when buying a house.
Duration on the market
The duration that a property remains on the market is one factor to consider when placing an offer. The longer it remains on the market, the lower the offer price should be. You risk losing the deal to a competing buyer if you offer too less for a new house. The seller may well be willing to negotiate the price if the house has been on the market for a while. However, you still have to be careful not to submit an offer that is unreasonably lower, which can end up costing you the deal.
Consider the property condition
Clearly, the condition of the house is another important determinant of the offer price. You must pay great attention to any structural issues like roof damage and rusty plumbing that can lower the offer price. A house that is ready to move in to will usually fetch a higher offer price that properties that require a lot of work. Simply looking at the house may not be enough to identify structural problems, so hiring a professional’s services for inspection can come in handy.
Prices of similar homes in the area
It is a good idea to research successful offers in the area for similar houses. You would want to gather data on factors like the number of rooms and square footage. This will help you determine what a fair offer price for the house you are eyeing would be. A buying agent can also help you gather this information.
Remember to ask the questions, consult with your buying agent and doing due diligence before submitting a reasonable offer price for a house that you are looking to buy. You can get in touch with me for any assistance or advice about buying or selling a home in Greater Boston. Feel free to call me or send me an email or get in touch on Facebook.
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