| |
Establishing Your Initial Asking Price
Chances are, you'll end up bidding less for the home than the seller is asking. In addition, you'll probably go through a round or two (or more) of negotiations with your seller before both of you agree to the sale price.
Your challenge is figuring out how much you'll offer to get negotiations started. Working in conjunction with your real estate agent, you'll need to consider several factors:
- The number of homes currently available, both in general and in that neighbourhood
- The asking prices of comparable homes in the area
- The recent sales history of similar properties in the area (How long were they on the market? How much did their closing prices differ from their asking prices?)
- Unique selling features such as a pool, fireplace, updated kitchen or bathrooms, etc.
- The general condition of the property and the area
- How urgently you need to purchase
- How urgently the seller needs to move
Do your homework before you set your bid price.
Learn all you can about the average home prices where you're buying. Is the market slow, red-hot or somewhere in between? How much bargaining power do you have? Read the business section of the local newspaper, and discuss the market climate with your realtor or banker.
Once you know how much you want to pay, you need to draw up your offer to purchase.
|
|
