How to determine what to offer on a house | Opendoor

now that you ’ ve found the home you want, the hard work is done, right ? not precisely. Before you start submitting offers, you ’ ll want to figure out how much you should offer. here are 4 factors that can help you decide what to offer on a home .
We won ’ metric ton rhythm around the shrub ; one of the most crucial parts of your offer will be the price. unfortunately, figuring out what to offer is a common pain distributor point for many buyers .
Below are 4 questions you can ask yourself ( and possibly your agent ) to help you determine the best price for your offer .

1. What have similar homes sold for?

That ’ mho proper ! Researching late sales in the area is a great identify to start when considering what to offer on a home. Comps ( short for comparables ) are a solicitation of recent, alike and nearby home sales. When generating comps for the property you want to buy, consider the watch criteria :

  • Location Construction type
  • Bedroom/bathroom count
  • Square footage
  • Condition (i.e. new construction, updated or “fixer”)

Pulling comps for the area in which you ’ rhenium shopping can help you begin to formulate a range of satisfactory sale prices that your propose should probably fall within. Your bribe agent will be able to help you access comps information .

2. How long has the home been on the market?

The amount of time a home has been on the market is a factor you should consider when setting your offer price. Generally talk, the length of clock a home has been on the market has a direct correlation to how much you could/should offer .
The longer the house has been on the market, the lower your put up can typically be. This means that, conversely, if a home plate has just been put on the market, your extend price should normally be higher. If you attempt to low-ball a newly listed home, you risk the seller passing on your offer in privilege of another opportunity .
On the other hand, if a home has been sitting on the market for a while, the seller will be more probably to accept a lower offer or at least negotiate on the price. Please note that careless of how long a home has been on the market, some sellers aren ’ t in a haste to sell. therefore, submitting an offer besides far below the asking price can actually backfire. If you intend to submit an extend below the asking price, it ’ randomness best to consult with your buy agent on how far under asking you should set it .

3. What’s the condition of the home?

This should come as no real number surprise, but a property ’ s stipulate is another identical significant factor in how much money you should offer for it .
A turn-key home, or home that is move-in ready, will typically receive higher offer amounts than a rehab/fixer home that ’ south in need of a lot of repairs. While fixers and rehab properties can be great opportunities to save money on the purchase of a family, it ’ south important to consider how much work you ’ ra bequeath to put into a home to make it livable.

When evaluating the condition of a home, you ’ ll want to pay attention to structural/functional issues. structural issues you ’ ll want to check for include :

  • A sagging or damaged roof
  • Cracks in the foundation
  • Rusty plumbing
  • Water stains on walls
  • Warped or uneven floors
  • Damage from pest infestations

Given that some of these issues can be unvoiced to identify plainly by viewing the home, your buying agent can request disclosures from the seller ’ second agentive role to check for inspections and reports that might indicate any electric potential issues that aren ’ deoxythymidine monophosphate visible to the eye. Please note, that disclosure packages won ’ deoxythymidine monophosphate constantly include an enumerate list of every issue ; preferably they will lone document issues that are known to the seller .

4. How flexible are you on price?

If your budget doesn ’ t have the jiggle board to offer more money, you can play around with the other aspects to ensure that your offer is still compelling to the seller .
aside from price, you can sweeten your offer by being flexible on factors like :

  • Contingencies
  • Closing schedule
  • Rent backs
  • Closing costs
  • Repairs

The mind is to entice the seller in other areas if you ’ re submitting an offer at a lower price. For a seller who favors a quick close, a short close schedule or waived contingencies could be more valuable than a higher offer price.

Final Thoughts

At the end of the day, the goal is to draft an offer that ’ s a win for you and the seller. Landing on the right monetary value for the home you want to buy can be a little slippery, but it doesn ’ t have to be difficult. barely remember to ask the good questions, consider your alternatives and partner with your buying agentive role .
This article is meant for informational purposes only and is not intended to be construed as fiscal, tax, legal, or insurance advice. Opendoor constantly encourages you to reach out to an adviser regarding your own situation.

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