14 Feb Things to Think About When Making an Offer on a Home
Searching for your new home is an intensive process, with many different things to consider. It’s one thing actually finding the perfect home for you and your family, it’s a completely different process actually securing the property as your own for the future.
Today at The Henry Wong Team® we want to share some tips for buyers who have found a home that meets all their criteria and want to move onto the next step of making an offer.
The act of making a verbal offer is easy, you simply phone the real estate agent and let them know the price you’re prepared to pay. A written offer is more formal and taken more seriously, so consider this option if you really wish to show your intent.
That’s the easy part though. It’s coming to a decision about what offer to make that’s the tricky bit. There are many things to think about, and we’ve put together a list of some of the things you should take into consideration when coming to your offer amount.
Know your own budget.
You’ve done a lot of research into homes within your price range, so you should have a good idea of what you can afford. It’s important to understand that and stick to it, otherwise you could enter into transactions that break down because of your finances.
With finance pre-approval from a lending institution, you know what resources you’re working with. You’re also presenting the seller with an easy way to move onto the next chapter in their lives, because you’re not going to make an offer outside of your limits.
Research the other properties in the area.
Look at homes in the area that are for sale or that have recently sold. Try and find ones that are similar to your home, taking into consideration the block size, the size of the building, and its condition and age. Remember that an asking price can be very different to a sold price, which is why it’s important to check out the recent sales too.
Research the neighborhood.
Getting an understanding of the suburb and your potential neighbours will help you arrive at an offer price. Find out if the properties in the area are tightly held. If families live in their homes for a long period of time, then they are generally happy with the area. Are most of the residents homeowners or renters? A strong homeowner presence can often mean a stronger community, because the residents are less transient.
Attend the first home open.
Showing up at the first home open is important. It helps you connect and start a relationship with the agent early. It also gives you a powerful insight into the demand for the property. If the open is poorly attended and is set to be auctioned, then it could be an opportunity to put in an offer prior to auction. A strong showing of buyers at the first open with offers presented means a strong campaign will follow, and you can adjust your offer accordingly.
Check the condition of the home thoroughly.
A home that is ready to move into will probably attract a bit more interest. If it’s a ‘fixer-upper’ and you don’t mind a bit of DIY, you can adjust your offer to take into account the extra expenses associated with getting it comfortably liveable. Building and Pest inspections by a professional are highly recommended.
Find out how long it’s been on the market.
Homes that have been sitting on the market for a while might have a seller who is very eager to get the process over and done with. Find out if there have been any big price reductions during this time. This will indicate a motivated seller who is keen to get the process moving. Also do research on possible reasons the home isn’t selling. There could be something holding buyers back.
Ask how the selling price was decided upon.
In conversation ask the agent how the selling price was arrived at. If it was as suggested by the real estate agent, chances are its accurate. If the owners insisted on the selling price, it could be a product of their misguided conceptions of their property’s worth. It could also be reflective of the property they’re planning to move into after selling.
Ask why the vendor is selling.
It’s good to know the reasons behind why the vendors want to move on in their lives, as it can help you figure out how motivated they are. Are they going through a relationship breakdown? Are they moving interstate? What sort of time restrictions have they got on their lives right now?
What’s included in the sale price?
Always double check and see if the white goods visible at the home inspection, such as dishwashers, are included in the sale contract. Other things to check are solar panels, air conditioners and garden sheds.
Don’t under offer.
When you do make your offer, put your best offer forward. If you come in too low there’s a danger the vendors and agent won’t take you seriously. It’ll be difficult to come back from this when you do make a decent offer.
The Henry Wong Team® have many years of experience selling real estate on the southside of Brisbane. We’d love to answer any questions you may have about the steps involved in buying and selling or help guide you through the process! Just get in touch.