How to Come Up With a Offer Amount When Buying Your First Home

So you found a home you want to buy and youvalue to the neighbors. You may want to overbid
think you are ready to go. However, there is oneto ensure that you win the house you want.
problem. You do not know how much to offer. If- Your Agents Advice - If you followed my steps
your offer is too high, you can overpay and feelin the earlier chapter, then you need to carefully
like you were tricked. If you bid too low, you riskconsider the guidance you receive from your real
offending the seller and watching helplessly asestate agent. Your real estate agent will be able
your dream home slips through your fingers.to let you know if your offer is reasonable and
When sitting down with your real estate agentthus, more likely to be accepted.
and attorney there are five different factors that- Sellers Goals - Sometimes sellers want to get
should guide your offer amount.rid of a home quickly and put their house on the
- Market Temperature - When there are moremarket to test the waters in order to see what
houses than buyers, then its usually a good timethey might be able to get for their house. In
to snatch up a deal. However, if you are buying ineither case your offer strategy would be
a more desirable neighborhood you may think youdifferent so you need to learn as much as
are in a buyers market, but you are really in anpossible about the sellers as you can.
isolated pocket which leans towards the seller- Your Goals And Mindset - Throughout the
getting close to asking price. Simply speaking, alooking phase you are going to see homes being
buyers market is a good time to bid low, while aput under contract days after being on the
sellers market requires offers to be closer tomarket. You will also see homes languish on the
asking price.market for many months. Your number one goal
- Recently Sold Comparable Properties - It iswhen thinking about an offer price is to NOT
important to remember that your offer shouldbecome emotional and make a quick, tired or
always be lower or comparable to what yourconfused decision about a home. Your decision
neighbors paid for their house. The reason why isshould be ninety percent based on the numbers
because your mortgage lender will be doing theand facts and ten percent based on your emotion
exact same thing in comparing your appraisaland heart.