I have found a home that I like- how much should I offer for it?

A skilled Buyer Agent will do a Market Analysis for the home you want to buy, showing you what similar homes have sold for recently. You can then take that information and balance it with your desire to buy the home and the seller's asking price.

There are other items on your offer to the seller that can be just as important as price to the seller - terms!

Your Buyer Agent can advise you regarding what terms you can offer and can then advocate for you during negotiations. Terms such as timing (are you flexible on your closing date?)for instance. If the seller wants a fast closing or needs time to find another home, can you accommodate them? Are you pre-approved for a loan or are you a cash buyer? What inspections will you do and how quickly?

A common mistake buyers make when making an offer is to take the seller's asking price and then start subtracting value based upon what work or repairs you know the property needs. You should instead work with an agent to determine the actual value of the home with those defects included. Do not assume the asking price is for a perfect home and then start subtracting. Get the details and advice of a skilled agent and then make your decisions.

I'm not advising that you should always offer what the seller is asking nor what the property is worth. Your goal should obviously be getting the home for as low of a price as possible. What you should ALWAYS do is have all the information necessary to make a fully informed decision on what price and terms you will offer. Doing anything less is like playing poker without understanding the rules. You'll waste both your time and your money.

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