Now, you have found your ideal first home in Adelaide. Next is to brainstorm on how much you should offer. Here are four aspects that can help you determine what to offer on a home.
We would not beat around the bush. One of the most critical elements of your offer will be the price. Unfortunately, reasoning out what to offer is a specific pain point for many first-time buyers.
Below are four questions you can ask your agent (and maybe yourself) to assist you in deciding the best price for your offer.
How Long Has The Property Been On The Market?
When setting your offer price, you should consider the amount of time a house has been on the market. Typically, the length of the time a property has been on the market directly correlates to how much you should/could offer.
The longer the property has been on the market, the lower you can bid on your offer typically be. It implies that, contrarily, if a house has been put recently on the market, your numbers should be higher on offer. If you try to undervalue a newly listed property, you risk the seller handing on your offer in favour of another opportunity.
What Have Comparable Properties Sold For?
Unquestionably! Researching recent sales in the neighbourhood is a smart way to start when thinking about what to offer on the house. Compare similar, current and nearby properties. When working on comparable for the home you want to purchase, consider the following:
- Location
- Construction Type
- Condition (Renovated or New Construction)
- Bedroom and bathroom count
- Square footage
What Is The Condition Of The Property?
Evaluating the property’s condition is another crucial factor in how much money should you bid on your offer. A move-in or turn-key home will commonly receive higher offer prices than a fixer/rehab house that requires many repairs.
When assessing the house’s condition, you will want to pay attention to functional/structural problems. Structural issues you should check for include:
- Damage from pest infestation
- Damaged or sagging roof
- Rusty/corroded plumbing
- Uneven or warped floors
- Water stains on walls
How Flexible Are You On Price?
If your budget does not have the scope to offer more money, you can play around with the other elements to ensure that your offer price is still convincing to the seller.
Include the following elements to sweeten your offer:
- Repairs
- Closing costs
- Rent backs
- Closing schedule
- Contingencies
The idea is to draw the seller’s attention to other areas when offering a lower price. A shorter schedule or speedy close could be more practical than a higher offer price for a seller who prefers waived contingencies.
Final Thoughts
Landing at the right price for the property in Adelaide can be a little demanding, but it does not have to be complicated.