Whether we’re in a buyer or seller’s market there are key tips you can follow to make a good offer and also avoid overpaying.
- Get to know the area. Your realtor will be able to fill you in on the local community, but it’s always good to do a little bit of research yourself. Get to know the pros and cons of a neighborhood as well as its home values before making an offer. There is a bit of work involved here, but a little research will pay off in the end. Research school statistics and commute times, investigate local shopping, public services, attractions, etc., because these all add to or decrease a home’s value.
- Work with a good real estate agent. A good real estate agent will work hard to get you a deal on a property. You should expect your agent to prepare a written comparative market analysis (CMA) before you make an offer. This should include recent sales of comparable nearby homes. A good buyer’s agent will use the CMA to show the seller’s agent why your offer is reasonable and should be accepted. Call Williamsburg Realty at 757-903-0450.
- Ask why the seller is selling. Before making your offer, try to find out why the seller is selling. Your buyer’s agent may be able to find out — but many times listing agents will not divulge this information.
- Request inspections. While it’s likely that you will have already made an offer on the property before inspections begin, if anything is found by an inspector that raises a red flag or reveals underlying problems with the house that could become costly fixes in the future, you can renegotiate your offer to reflect such findings. Often, if inspections expose negatives about a home, the seller will gladly adjust the final price to be agreed upon in order to keep you onboard or will make the repairs.
- Don’t make your first offer your best offer unless you know that you are in competition. Then you can use an “escalation clause. ”Your starting offer should allow plenty of room for negotiating. You certainly don’t want to start by offering every penny you have in your budget. Always make an offer that’s below your best and final offer. In the best of situations, a seller will agree to a price that is well within your budget, giving you extra funds for improvements or furnishings. Always allow yourself ample time to research an area and choose a realtor who has your best interests at heart. Apply these tips and you’ll be better equipped for making a great offer that reflects the true value of the property. Your realtor can advise you.