How Much Should I Offer For A New House?

For buyers, now’s the best time to purchase your dream property. The housing market is overcrowded with properties, and there aren’t remotely enough buyers for all of those. Therefore the average house price could be lower to attract more buyers, which means that you could save yourself a lot of money in the process.

Making an offer on a house can be daunting, at first. However, in a post-pandemic world, vendors are keen to sell, which means they are less likely to reject offers. Or, at least, they will be happy to consider negotiations. Comparing against other properties in the housing market can give you an idea of the average prices and help you take control of the talks.

Photo by Ярослав Алексеенко on Unsplash

Gathering essential knowledge and expertise

You can’t make an acceptable offer without gathering not only knowledge from expert sources but also best practices. For instance, there’s nothing more frustrating than having a vendor coming back on a seemingly done deal with the transaction process is taking too long. That’s precisely why you want to work with a professional licensed conveyancer to help handle the transaction and ensure you don’t waste unnecessary time or money. But as you prepare to make a price offer, it’s a good idea to do due diligence and get familiar with the property and local authorities. Your due diligence checklist should include among other urban living factors, growth areas, and flood and fire risks.

First impressions matter only so much

Ideally, you shouldn’t buy without visiting the property first. That is where you can build a first impression of the house. Remember that homes can be staged for visits to make the best impression. But there are some tell-tale signs that don’t lie. A killer curb appeal is a favourite strategy to boost the house value. But remember that unique landscaping features don’t show the whole story. Instead, pay close attention to the paint and the essential repairs and improvements. As you visit, you want to look for potential issues, such as a crack in the exterior wall or old windows that let the air in. These will affect your price offer dramatically.

Understand what is motivating the seller

Why does someone want to sell their home? There could be a variety of reasons, but gaining a better understanding of their intentions can prove useful during the negotiation process. For instance, they may be selling the house of an older relative, in which case you can expect the property to be needing some level of maintenance and repair. But, the seller may be willing to accept a low price offer. Similarly, if the house has been on the market for a long time, you can safely propose a low offer – as long as you can justify it. On the other hand, a seller who is selling to finance their next property will be strict on the negotiation board. They will probably refuse offers that don’t prove advantageous to funding their climb along the property ladder.

In conclusion, how much you offer for a house depends on a variety of factors. Your understanding of the property restrictions and risks in relation to the local community can play a huge role in figuring out the best price tag. Additionally, essential repairs and the seller’s intentions are crucial factors that can give you some leverage in the negotiations.