The first three rules of real estate are, location, location, and location. But once you’ve found the perfect house, how do you know how much to offer?
If you’ve conducted the proper search and found the right house, then you should be close to knowing exactly what the property is worth on the open market and thus how much you should bid to begin the negotiations. With buying houses, the proof of the pudding is not in the tasting but in the making process. What I mean is, the knowledge you acquire while searching for your next home is essential to your confidence in making an offer.
How do I know how much to offer for a property?
1. Research the property: Know where the property is and what the property has by using the Internet to view the inside and outside of the property. Google maps is a wonderful tool for looking at the neighborhood. MLS and real estate websites are great for pictures of home interiors and for virtual tours.
2. Research amenities: Part of knowing what a property is worth means learning about the area in which a property is located. Be it close to a great school, or easy access to the highway, the value of a property is partly determined by what it’s close to.
3. Research market value: Once you know about the property, learn what the market will pay for similar properties. Find a basic market value range based on houses of similar style and age. Remember too that real estate is very localized, a three bedroom bungalow in one area may sell for many thousands of dollars more or less than a similar house in a different neighborhood.
Real estate’s fundamental truth is that the value of a property can only be determined by what someone will pay to own it. To know what you should pay to acquire a property, you need to know what someone will pay to own that property.
Sometimes people are so afraid of making a mistake, they make the mistake of bidding far too low. Hopefully this mistake becomes a learning opportunity and you don’t lose out on your dream home twice.
What’s the best way to make an informed offer?
Work with a real estate agent.
Most people find their next real estate agent while they are searching for their next house. The sooner you find an agent you want to work with, the easier and more enjoyable the whole process will become.
There are over one thousand real estate agents in Kitchener Waterloo. I’m sure there are many who will be a great fit and help you make the move.