February 24, 2024


Mad about real estate

Bidding on Real Estate – Beginner’s Guide

Every prospective home buyer knows that the most nerve wracking part of the real estate search isn’t hiring a real estate agent or seeking the perfect location with essential features; it occurs once you’ve already found the most desirable residence your search has yielded. The moment of  truth happens when you resolve to make your offer. Most real estate agents are cautious to suggest a price, so it’s up to you ensure that you go about this undertaking properly and correctly.

Although no one expects you to become a real estate aficionado during the purchase process, there are several things that you can do to find out what the best offer is for the desired property. The first thing that you’ll want to try to uncover is why the seller wants to sell. The listing agent has this information, and some are willing to share while others are not. It certainly would not hurt to ask and may assist you in determining an appropriate bid.

The next area of research is your individual local real estate market. You need to know if your local market is supportive of buyers or sellers. If you are in a buyer’s market, there won’t be as much competition over the home you want. In other words, there may not be other bids out there on the home. If it is a seller’s market, the owner of the property may be far less likely to negotiate with you. The owner may not accept your offer because there may be several other, more attractive bid submissions.

Make sure that you contrast the list price of your prospective home to recently sold houses that are similar when it comes to size, age and setting. This will give you a broad sense of how much other buyers have paid for like real estate. Keep in mind that anything sold more than six months previous to your query is not applicable.

Another aspect to consider is how much homes are going for for in your area in terms of the average price per square foot. Although this is not a good way to come up with a good price to offer for the home, it is a great way to judge whether home prices in your area are going up or down.

Also try to find out the current mortgage balance that the seller is carrying. If the seller has already relocated and still owes a high amount on the home, they are much more likely to negotiate. If, however, the seller has already paid off the home, then negotiations will be much more limited.

Present the seller with your introductory bid which you have calculated based on the advice mentioned above. Don’t be disheartened when they in turn make a counter offer. This is a integral part of the process because it is quite unusual for the property owner to agree to your first bid. These negotiations are commonly made through the real estate agents, but don’t be disinclined to speak directly with the seller if you tend to prefer a more personal level of communication. This crucial course of action varies in duration for each situation and may be brief or lengthy, so maintain your patience. Also, make sure that you keep close tabs on the status of these proceedings and maintain a close professional relationship with your real estate agent. This will help to prevent another potential buyer from snatching the home of your dreams.

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