How Property Condition Affects Your Offer
Since you have toured the property you are interested in, you should know how it compares to the general neighborhood. All you have to do is put the home in one of three categories – average, above average, or below average.
When assessing a home’s condition, consider its structural integrity, including walls, ceilings, floors, doors, and windows. Also, pay attention to the state of paint, carpets, floor coverings, plumbing, and electricity, particularly in bathrooms and bedrooms. Take note of the fixtures, like light switches, doorknobs, and drawer handles. The front and back yards should also be in reasonably good shape.
To complete your evaluation, review information on comparable homes from your sales list. Your agent should have visited most of these homes and be able to offer valuable insights.
Seller’s and Buyer Market
A “seller’s market” is a hot market where homes sell within days of being listed, often with multiple offers, and sometimes even above the asking price. Reducing your offer, even by a few thousand dollars, could mean losing out to another buyer.
In a “buyer’s market,” the opposite is true, with properties remaining on the market for longer and fewer offers. Prices may even decline temporarily, so buyers can offer lower prices with greater flexibility. Even if your initial offer is too low, the seller is likely to make a counter-offer, starting negotiations.
In a “steady” or transitional market, there are no hard rules about making an offer on the high or low end of your range. You could encounter multiple offers on your preferred home or none for weeks.
Transition markets are harder to define. If the economy slows unexpectedly, like in the early 1990s, buyers who purchase homes during a seller’s market (like the late 1980s) may experience a loss in home value for years. No one can predict when the market will change or how the real estate market will fare.
Rely on your agent to give you guidance in this area.
How Home Improvements Affect Your Offer Price
Even when comparing exact model matches within a tract of homes, you should note whether the previous owners have made any substantial improvements. Cosmetic changes should be largely ignored, but major improvements should be taken into account. Most important would be room additions, especially bedrooms and bathrooms. Other items, like expensive floor tile or swimming pools should be taken into account, too, but should be discounted. A pool that costs $20,000 to install does not normally add $20,000 in value to the home.
Rely on your agent to give you guidance in this area.
If you have any questions, you can contact us at +1(516) 829-2205 and +1(516) 647-4289. Additionally, you can also find us on various social media platforms such as Google My Business Profile, Facebook, Twitter, Linkedin, Instagram, YouTube, and Pinterest.
