3 Factors To Help You Determine How Much To Offer On A House

When you shop for a home to buy, you may look at dozens of different homes for sale before you find the one you really love. Once you find the right house that is within your budget, you may want to make an offer on it. As you consider this, you may wonder how much would be a good amount to offer, and here are three factors that can help you decide how much to offer for the house.

The fair market value of the house

One of the most important things to evaluate is the fair market value of the house you want to buy. The fair market value of homes can increase and decrease based on the supply and demand of houses in the area, so it's important to understand that this can fluctuate. 

The seller's motivation to accept your offer

A second factor that can play a role in the amount you choose to offer involves the seller's motivation to get rid of the house. If the seller just listed the house and has no reason to sell it fast, the seller may reject any offers that are not close to the asking price.

On the other hand, if the homeowner needs to get rid of the house quickly, or if the house has been up for sale for a really long time, he or she may have a lot of eagerness to dump the house for a price that is considerably lower than the asking price.

The work the house needs

Finally, you may want to consider the amount of work the house needs as well as the costs for making the necessary repairs on the house. If you find out that the house needs a new roof, a new furnace, or something else that is costly, you can figure the expenses into your asking price if you want. Another idea is to offer a decent amount but ask the owner to take care of the costs of fixing whatever the issue is with the house.

These are all important factors to consider as you prepare to make an offer on a house, but you may also want to discuss this issue thoroughly with your real estate agent. He or she will be able to give you good, solid advice on making the right offer, and real estate agents offer expert advice, primarily because they know the market.