Mortgage Information from HUD
Mortgage Planning Help
Home Buyer's Guide Step 5
Make the Right Offer
Now it’s time to make an offer on the home you want to buy. Once again, your real estate agent can offer tips for making an offer on a house successfully, so you get just the right house, at just the right price.
Understand Your Real Estate Market
Before making an offer on a home, your agent can help you consider important data through a little research on recent home sales in your local real estate market.
- First, gauge the market – is it hot or cold? If there are more homes on the market than buyers, it’s called a buyer’s market. In a buyer’s market, you will have less competition for the home and potentially more bargaining power.
- If it’s a seller’s market, meaning there are more buyers than homes on the market, sellers may not consider any offer that’s less than the list price.
- It’s helpful to know how much the seller originally paid for the home and how long it has been in their possession.
- It’s also helpful to know why the seller is selling. You or your agent can ask the listing agent, but they may not tell reveal the reason.
- Find out if other buyers are competing in a bidding war. If so, pre-determine your maximum budget. You don’t want emotions to push you too far over your limit.
Use Comparables In Making Your Offer
Examine comparable sales of homes in the area. Many counties have real estate Web sites that list home selling prices and allow you to compare homes in certain neighborhoods. Look at homes that are similar in configuration and age as yours and use the data only from the last six months for the most accurate comparables.
NEXT STEP: Get a Home Inspection
- Avoid buying a money pit!
- Ensure the value of the house you want to buy.
