Properties of the Pacific

How much should you offer?

For many prospective homebuyers, one of the most difficult moments in the home-buying process comes when they have to decide how much to offer. How much is the home really worth? How low is the owner willing to go?

A good beginning strategy is to ask your real estate agent for a list of "comps." Comps are comparable homes that have sold recently which are similar in size, location, condition, and features to the one you want to buy. By comparing the sale price of the comps with the price of the home you want to buy, you can get a pretty good idea whether the one you want is realistically priced.

Remember that homes rarely sell for their full amount of the list, or asking price. In fact, the ultimate sale price of a home is typically 5 - 6% lower than the asking price. Based on this, owners will usually list their home for a price higher than they expect to get. Depending on the situation, buyers often make a first offer that is lower than the figure they are willing to settle for.