When looking to buy a new home, you should make sure that you have a budget in mind to keep you and your finances secure. However, even if a home you love is outside your price range, you should not give up hope. Making an offer lower than the listing price can be a beneficial practice. Still, it is important to take steps to determine an appropriate amount and assess whether your offer will be genuinely considered.
Compare Similar Properties
Looking at other properties with similar features and recent sales can give you a better idea of what the market looks like for such properties. Be sure to limit your search to similar properties in the same area, as location can drastically alter the sale price. Similarly, it would be best if you only took into account properties that have sold in the past six months, as this is as far back appraisers typically look to determine an appropriate listing price.
Identify the Market Value
The market value is not a single price but rather a range. By researching recent similar sales and accounting for the condition of the general market, you can quickly determine the market value. What you pay for the home should then fall into this range, where a price toward the low end will be a bargain, and a price toward the high end will entail paying for the full value of the property.
Assess the Property for Repair Needs
When you view a home, be sure to ask about repairs or renovations, the home will need in the near future. It is also important that you look for yourself to identify any additional areas of concern. Many of these repairs have likely been considered in establishing the listing price, but it does not hurt to reference them when making an offer.
Reference the History and Days on Market
If a home has been on the market for more than 30 days, those sellers will likely be more open to offers than those who have recently listed their homes. If this information is not readily available, you may have to find it for yourself. In some cases, when a home has been on the market for a while, agents will re-list it to garner new interest; such homeowners may also be willing to negotiate.
Mehran Redjvani is a trusted real estate agent in the Greater Toronto Area. For more information about buying or selling a property, please contact Mehran!