How Do You Determine The Price Of Your Initial Offer?
Let’s talk about what price to offer on a property and why it’s important to sit down with your local agent and review recently-sold comparable homes.
The comparable homes will not be an exact replica of what you are purchasing, so your agent will help you determine a price by adjusting for any inferior or superior features, as well as providing market stats to show you how much the market has increased since the most recent comparable sale. You want to make sure that the house you are buying is not overpriced, and that you are not overpaying.
If you are in a multiple-offer situation, you will probably be making an offer that is above the asking price, but it is still important to review comparables to make sure that you’re not going too high.
On the other hand, if a house has been on the market for a few months and has done several price reductions, this is a great opportunity for you to go under the list price and to get a great deal.