All buyers want a good deal on a new home purchase but knowing how much to initially offer can be a difficult decision. Too low of an offer may offend a seller causing a refusal to negotiate further. On the contrary, if the first offer is accepted right away, buyers might feel they overpaid for the property. So how does a buyer know what to offer?
Current Market Value
It is important to determine the current market value of a home prior to writing an offer. A buyer needs to know if the seller is asking a fair price for the property or if they are overpriced or underpriced based upon similar properties sold in the same area. This is a great starting point.
Motivation
It is important to determine the seller’s motivation to sell. If the seller has purchased another home, moved already or has had the home on the market for several months, the seller may have a high motivation to sell. A seller with a high motivation may be willing to accept a lower amount. It is also important to determine your.... Read More