Decide How Much to Offer on a House

One of home buyers’ biggest fears is paying too much for their first home. Conquer that fear by using our three ways to decide what price to offer to buy a home.

When buying a house, your offer price can be determined by looking at three points of view.

Measure the “Mo” –  The Sellers Point of View

”How much do you think they’ll take?” is a question I get all the time. I wish I could pull out my crystal ball to see the sellers level of “mo” tivation. Truth is, we have to do it the ol’ fashioned way- with good detective work!  See our checklist of “Questions to Determine a Sellers Motivation”

Using “dollars per square foot” is faulty.  See Download on the right “What doesn’t work to decide on an offer price.”

The “Morning After” Question –  Your Point of View

Ask yourself, “If I write an offer tonight at X price and my Buyer’s Agent calls me in the morning and says someone beat me out with a higher offer, how bad would I feel?”  If you’d be crushed, you should offer a bit higher.  If you’d feel just fine and need to get it at your price, offer a bit lower.

Compare “Apples to Apples” –  Market Point of View

Everyone has comparison shopped for cars, apartments, etc.  It’s the same with a home.  Once you’ve seen 4 to 6 similar homes in a neighborhood, you get a good feel for what’s a good deal and what’s not.  Have your agent pull up “sold” prices of similar homes for the most accurate comparison shopping.

There is no exact price for a home!  It all depends on how motivated a person is & motivation is personal.