You’ve spent the past few months visiting open house after open house. You have walked through enough “newly updated kitchens” and “open floor plans” to last you a lifetime. Well, the time has finally come for you to make a decision. You’re excited that you and your family have finally found a home that fits your checklist as best as possible. Well, believe it or not, finding your dream home was the easy part.
Now, comes the part where many home buyers dread: the bidding. You see, while this may be the perfect home for you, chances are that this may also be the perfect home for about 3 other people simultaneously. It’s imperative that you make the best offer you possibly can the first time, as a second chance may not be given. With that in mind, California real estate agent Destiny Davis shares the best strategy for guaranteeing that your bid is the best bid.
Check the Market
A key factor in determining the value of a home is the temperature of the housing market. With a hot market or a seller’s market, the seller is more likely to not accept anything less than the list price. On the other hand, in a cold or buyer’s market, sellers are more flexible with the offers they choose to accept. Be careful to not make an offer that is far below market value. This practice of low-balling is considered insulting. You should; however, be wary of people who list their homes too high.
Research Comparable Sales
Destiny Davis shares that another great factor to helping you find the right bid is to look at comparable sales. Check out other home values in the neighborhood or area and see how those houses sold. You should only check as far back as 6 months to get a truly realistic idea to base you researched bid on.
Ask the Neighbors
Believe it or not, neighbors will be brutally honest about the conditions of their neighborhood. They are as much invested in your purchasing the home as you are. Don’t be afraid to ask the neighbors how they feel about the neighborhood. The neighbors will be able to answer any questions you have regarding crime, noise level, and the local schools. If you find a potential problem, you can determine whether this a deal breaker for you before involving yourself in the bidding war.
You should never buy a home unless you are completely certain. However, there are times where protecting yourself is necessary against the unknown. Protect yourself with contingencies in your price offer. Now that you’ve armed yourself with a little knowledge from Destiny Davis, you can go out and make the best offer on your dream home. Good luck!