10 April 2007

Four Factors That Affect Your Offer Price On a Tooele Home

Four Factors That Affect Your Offer Price

When you have found a Tooele home you like, one you could see yourself living in for a while, the next step is to make an offer on the home.  You might be tempted to make an offer somewhat lower than the seller’s asking price, simply because you’ve heard that you’re “supposed” to do that.  However, there’s more to an offer price than low balling the asking price. The price that you offer on the home can be influenced by many other factors.

Property Condition

After seeing the home, you will have an idea of how it compares to other homes in the neighborhood.  Your Realtor can help you to determine if it’s above, average, or below the other homes in the market.  They can also get you the recent selling price of homes in the neighborhood.  If you rated the property as average, your offer price should be similar to those that have recently been sold.  When you are considering the condition of the home, look at things like bedroom doors and door knobs, fixtures, light switches, and cabinets.  These will give a good indication as to how well the home has been taken care of.

Market Conditions

In a buyers market like we’ve had of late, you might be surprised there could be multiple offers on a property, often above the asking price. Listing prices are so low that in many cases there is room to offer more than what a Tooele home is listed for  Usually in a buyer’s market, homes remain on the market for a longer period of time.  You have more flexibility to negotiate in a buyer’s market.  Right now, we seem to be in an interesting market where there are no rules, but where location is more important than ever.  Depending on the condition of the market in a particular neighborhood you can increase or decrease your offer price. An example would be the homes in Stansbury Park that are tied to the golf course or to the lake, or in Grantsville UT where horse property and larger lots can distort value to a layman. Let your Tooele Realtor help you.

Home Improvements

Some cosmetic changes like new paint and carpet don’t always have a major influence on the home price.  On the other hand, if the seller has made big changes like the addition of a new bedroom or bathroom, finishing the basement, or screening in a patio, you may want to increase your offer beyond the average home.  You don’t have to increase the offer price dollar for dollar  based on the cost of these additions.  Rarely does $10,000 in home improvements add $10,000 to the value or offer price of a home.

Seller Motivation

A “motivated” seller won’t automatically allow you to knock down your offer price by a very large amount of money.  That doesn't mean,  that you can’t offer a few thousand dollars below the asking price.  Sellers that are relocating from Tooele are often in more of a hurry to sell their homes, especially if they have to buy a new home soon. Be careful of ads that use phrases that indicate they are motivated to sell, often these are tactics used to generate leads for an agent. Besides, aren’t all sellers “motivated”?

There are many factors that go into making the right offer on your next home. Your local Realtor can be a great help in this process. As you consider  these factors and come up with an offer price, keep in mind any mortgage pre-approval amount that you have been given by the lender.

If you don't have a Realtor and would like to talk about more than just these four factors that affect your offer price on a Tooele home call Berna@ 435-840-5029.



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