3 Things home buyers consider when making an offer
So, you've viewed a great place, now what?
In addition to getting reports on sale prices of nearby comparable homes and market stats from a REALTOR®, there are three major ways buyers can determine a winning bid:
- The condition of the house.
Is the home in move-in condition, in need of paint and other cosmetic improvements, or a fixer-upper that needs real work?
- The market.
If you are in a buyer's market — where there are more homes for sale than there are people to buy them — prices are probably stable or falling. If you are in a seller's market — where there are more buyers looking for homes than there are homes for sale — prices are probably moving upward.
- Your ceiling.
If you have a pre-approved mortgage, you know how much you can borrow for your home purchase. Of course, you may not be comfortable paying as much as you've been approved to borrow, so think carefully about your financial situation before making an offer.
Next, decide how much you are willing to pay for a home. Remember, the advertised price of a house is just a starting point – it may take quite a bit of negotiating to arrive at a final cost.
Tip: The value or disadvantage of certain home features can help or hurt resale, this is where a good REALTOR® can help. In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighbourhoods with two-car, attached garages, a single-car or detached garage may affect the home sale and future value.