Consider These Influencing Factors Before You Make An Offer On A Home

Posted on: 18 October 2016

Buying a new home is an exciting time, but it's important to think carefully when it's time to make the offer on a home you're considering. While it's easy to get caught up in the idea of living in the home and end up offering more than you should, this is a time to be methodical in your approach. A number of criteria can influence how much you should offer, and your real estate agent will be able to guide you along in this process. By now, you'll have likely toured through the home a couple times, which can help you put together a number for an offer. Here are some influencing factors to keep in mind.

Things That Need To Be Replaced

Think of all the things inside the home that will need to be replaced upon you moving in. This list could include carpet that is worn out, a back deck that is rotting, a front walkway with cracked flagstones, a ceiling fan from the 1980s, and any other similar items. When you tour the house, it's a good idea to take notes on the elements that need to be replaced. Then, you can work closely with your real estate agent to assign a dollar value to these items, and then factor this amount into your offer.

Sense Of The Seller's Urgency

Often, you can buy a home for much less than the asking price if the seller is eager to sell. This can often occur if the closing date on the home he or she is purchasing is fast approaching. While you might not have a clear idea of the seller's urgency, talk to your real estate agent about his or her suspicions. For example, the agent might reveal that the listing agent has suggested that the owner is eager to sell. Or, your agent might learn that the home has been on the market for a long time, which could indicate the owner wants to sell it soon.

Time Of The Year

The spring and summer are busy times in the real estate world, with the late fall and winter being not as busy. If you're approaching a less-busy time of the year, you might be able to factor this into your offer. For example, if it's October, you and your agent might discuss making a lower offer because the owner might wish to close the deal on the property in November, thus allowing him or her to move before the holidays begin.