The Offer

offer2When you find the house you want, will you know how much to offer the seller?  Although everyone likes to get a bargain, every transaction is unique and there are certain factors to consider in each potential purchase.
Recent Comparable Sales
  What prices have similar properties sold for in the recent past?  Is there a trend in the area that would justify an offer in a certain amount?  Remember that the seller will be referring to the same sales data when evaluating your offer, so if your offer can be backed up by solid market data, there is a better chance of having it accepted.

Demand for This House  Some properties have no one else interested at the time you make your offer.  This situation is to your advantage because the seller doesn’t know when or if another offer will come along.  If the house you want is in great demand, you could be involved in a bidding war regardless of what the market value may be.  One strategy may be to offer more than the seller is asking.  This will often get the house when competing against someone else who thinks a full-price offer is sufficient to win the house from you.  Offering a high deposit also helps strengthen your position.  Another good strategy is to obtain a pre-approval from a mortgage lender prior to making the offer so the seller is assured in advance that you will be able to qualify for the loan amount needed to complete the purchase.