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.