Five Factors to Consider When Determining Your Offer Price💰

Five Factors to Consider When Determining Your Offer Price💰

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In the event of a multiple offer situation (which most homes are in this market), there is only one opportunity—maybe two (in case of a counteroffer) to submit your highest and best offer. During this time, your agent can show you the recent comparable sales and give her opinion of value, but in terms of exactly what to offer—it comes down to what is the house worth to you personally and what you can afford.

Some of the factors my buyers and I consider include:

1. What have similar homes in the area sold for recently?

2. How long has the home been on the market?

3. What is the market like in the area?

4. Are there any other offers on the table?

5. At what price would you feel that you “over-paid” for the home?

There is no catch-all formula for how much over the asking price you should offer, but your agent is there to help guide you through these factors and pull relevant information that will help you decide what price to offer.