4 factors to consider before making an offer for a property
Posted on: 8 November 2019
House hunting can be an emotional rollercoaster. You may come across a property that you really like and feel tempted to make a generous offer. Sellers know this, and that's why they prepare the home to appear as appealing as possible. You can still land a beautiful home at a fair price if you know how to make an offer.
Making an offer is much like negotiation — an art that requires careful thought and knowledge of the market. If you make a very high offer, you may end up overpaying. If the offer is too low, you might lose the property to someone else. Here's what you should consider before making an offer for your dream home.
1. Don't appear desperate
The most common mistake buyers make is to disclose everything they're willing to offer. Real estate agents can use this information to make you commit to a particular type of property, even when there are other options available.
A better approach is to keep a slight mystery over how high you can go. You may give a general range, but don't necessarily disclose exact amounts every time you're looking at a home. Having a range will encourage real estate agents to show you several properties you can choose from at flexible prices.
2. Do your homework
You should also be aware of your local real estate market before making an offer. Real estate is a very local/regional market, meaning that a property boom in one city could occur at a time when the neighbouring city is going through a slump.
Take advantage of this information to make a competitive offer. For example, if your area's real estate environment is slow, you'll have more leverage with sellers. If homes are in demand, you may be prepared to make a higher offer or wait for things to cool off.
3. Find out as much information as possible
Buyers should also know the ins and outs of a property they wish to purchase. Hire a professional home inspector to check the HVAC system, plumbing, walls, floors and roof. If any repairs are necessary, you can use the repair cost as a negotiating tool for a lower price.
This is where the services of a conveyancing solicitor come in. These professionals can help you gather all relevant documentation with regards to the property including title information, home inspections and previous transactions.
4. Consult your solicitor for advice
Finally, don't forget to involve your solicitor during the entire process. They can help you assess the value of a property, local real estate trends and dollar values that make sense for the transaction.
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