Buying Advice

A Home Of Your Own

Buying Your Home

Making An Offer
How Much Do You Offer?
Initiating The Mortgage

Contract To Closing

Selling Advice

Home Sale Prices – How Much Do You Offer?

There is obviously no single answer to this question.  However, there are basic considerations that must be factored into any offer to purchase.  Ted Weaver will help you to determine the appropriate amount to offer to secure a winning bid regardless of home sale prices.

How much?

With a wide variation of home sale prices, the appropriate amount to offer will vary based on a number of factors, all of which must be considered in their entirety in order to arrive at the right number for you and your situation. Ted Weaver can aggregate and assimilate all of this information to determine what makes the most sense for you.  

  • Competing Listings.  We need to look at comparable homes currently listed.  In other words, if you’re purchasing a 2-Story home built in 1990, we cannot use a ranch style home built in 2015 as a comp to help determine value.  Even if they’re in the same neighborhood, there’s zero impact on value between the two.
  • Comparable Sales. Similar to competing listings, we need to look at comparable sales within no more than the last 6 months and within no more than 2 miles of the subject home.  Comparable sale prices also take precedence over current listings.
  • Current State of the Market.  The current market pace can be critical in determining our approach.  If homes are flying off the market, we’ll need to be more nimble and approach an offer accordingly.  If, on the other hand, a buyers market persists and homes are languishing, we can be a bit more judicious and selective.
  • Condition of the Home. Is the home in move-in condition, in need of paint or other cosmetic repairs, or a fixer-upper that needs substantial work?  The offer should be reflective of the cost to repair relative to the home’s repaired market value. home sale prices
  • Appreciation Potential. Is the home maxed out in value based on its current state? Or is there future upward value to be gained with modest or targeted updates?  The return on investment in such a case can be tremendous if done properly.
  • Your State of Mind.  Your mindset with respect to the house is a key component to how we approach writing an offer.  See the section about Making An Offer for more details.
  • Your Ceiling. Your lender pre-approval identifies how much you qualify financially to purchase a home. However, you may not be comfortable paying this full amount.  So think carefully about your financial situation and let me know your ceiling before we make an offer. https://www.freerateupdate.com/communication/form-landing?type=fha&utm_source=Bingads&utm_medium=Search&utm_campaign=FHALoanCalculator&msclkid=349cece0b50d1715bc78b3b735f82647&utm_term=first%20time%20home%20buyers%20loan&utm_content=FHA%20Loan%20Calculator%20(Bing2)

 

Helpful Tip

Regardless of how long you think you’ll be in your new home, you should always be considering resale factors.  Life happens and “forever” homes don’t always last forever.  Keeping in mind critical resale factors such as whether a school district is desirable (even when you don’t have children) can be key in the future if / when you have to sell.