When you decide to make an offer there are many factors which you should take into account. Taking these factors into account will ensure that you do not pay over the odds for your ideal home.
One of the factors which should always be taken into account is the conditions of the local market. This is a good indication of how much you should be paying and also an indication on whether you should hold on a for a while before deciding to buy. You will also need to know whether the markets are rising or falling or even stagnant at the time of putting in an offer.
Another important factor that should determine the price you offer is to look at the time that the property has been on the market for. If the property has been on the market for a while then you might be in a suitable position to reduce the asking price of the property, especially if the seller is looking for a quick sale.
Comparing like for like properties in the area is also a good way to ensure that you are not paying over the odds. A comparison must be done with properties of similar size and features in the area. This will give you a good indication of what the property may be worth.
Determining how much work the property requires to bring it up to your standard in an aspect that should also be factored into your offer. Obtain estimates on the work that the property requires if applicable, this can sometimes be used as a bargaining tool with the vendor.
If you are also purchasing property in a buyers market where there are more properties available on the market than buyers, you might want to factor this into your offer. Usually in a buyers market, property takes a while to sell and some property owners dread the fact that they may have to wait weeks before they find a buyer. This can be used to your advantage. On the other hand if it is a sellers market, where the buyers exceed the number of properties available on the market the property owner can afford to be selective on what offer they accept for the property.
In a sellers market there has been situations where buyers who have fallen for the same property have tried to outbid each other by increasing offers. This can be a buyers nightmare but also a sellers lucky day.
When making an offer below the asking price it is a good idea to let the buyer know the reasons behind your making of the offer. This can be for reasons such as the cost of repairs that might need doing to the property or a similar property in the neighborhood is selling for XYZ.