When you are in the market for buying a home; and when you see a home that you really want then you make an offer to the seller to buy it. Basically an offer lets the seller know you are seriously interested in the house. Making an offer however, doesn’t obligate you to have to buy it. This is particularly true if you find after the mandatory inspection the house has massive problems.
It’s always good to try and find out as much as you can about the home you are interested in buying like why the owner is selling. The listing agent of the home may not divulge why; but try and ask the owner directly if possible. If not, you can still gather some kind of information about the home you are interested in buying without the cooperation of a listing agent.
Keep in mind that the climate of the real estate market can actually help you with the offer you make. You want to first see if the market is hot, cold or neutral when it comes to buyers. It is ideal for a person looking for a home to buy in a buyer’s market. When the real estate market is cold, you will find the sellers more willing to negotiate because it is harder to sell a house at that time. Sometimes in a cold realty market the seller may even pay a portion or all of the closing costs in an effort to sell the house.
A buyers market is one in which there are ample homes for sale and not that many buyers purchasing homes. Typically when a home is on the market listings for sale for six months that constitutes a buyer’s market. When this happens there is more inventory for buyers to choose from. Prices tend to drop as well to meet the demands of the buyers. Thus you have a buyer’s market. On the other hand a seller’s market is ideal for those selling homes. This is when more buyers are looking for home and the buyers are competitive for the same homes. When this happens the seller takes the best offer to sell. Also when it’s a seller’s market the seller tends to pressure the buyers. The do have to keep within a 10 day minimum which is the law because that’s the time frame they have to check for lead paint before a closing.
Keep in mind when you make an offer for a home, you want to compare prices of other like homes in the same area. It good to know how much the seller paid in order to come up with a feasible price to ask the seller to give the house to you for. You want to only compare those properties with similar configurations, age and location to the one you want to buy. This way the asking price is realistic based on the type of house you are asking to purchase.