Determine an Offer Price
You’ve found your dream home. You can see yourself on the beachfront in your new Hilton Head villa, at the poolside of your beautiful condo, maybe hitting the golf course just outside your backdoor. But will you know how much you should offer?
Making an offer on a property isn’t difficult. You know what the seller has listed their property at. You just have to figure out how much you’re willing to pay.
Here’s how you’ll decide. You’ll need to:
- Know the market.
- Know what other similar properties have sold for.
- Have a clear understanding of the specific property.
- Be clear about the most you’re willing to pay.
Know the market
This is where you’ll start, even before you begin looking at homes. We’ll be able to help you with this part. You’ll look at how many properties that match your requirements are on the market and how long they’ve been available. If there are many and they’ve been for sale for a while and sell for under the asking price, it’s a buyers market. If there are few and they sell quickly, close to or above the asking price, then it’s a sellers market. This simple gauge will tell you how close to the seller’s price you’ll need to offer in your bid.
Seller’s Market Tip: Get pre-qualified for your loan. If you want to move quickly on your Hilton Head Island dream home, having financing worked out in advance will make your offer more attractive to the seller.
Buyer’s Market Tip: Don’t get greedy. You can make bids that are low, but not insultingly low. Don’t think you can get a steal. Sellers tend to counter to offers that are low, but reasonable. They’ll simply reject an offer that’s far too low. If they reject your offer and you’re forced to come back on your own, you’re in a much weaker negotiating position. If you want the property, make a reasonable offer.
Know what other similar properties have sold for.
In the real estate business we call this “the comparables.” It means what other near by properties have sold for, as well as properties that are as close as possible to the quality and condition of the properties that you’re interested. This will give you your ballpark price.
Tip: You can use the MLS system right here on our web site to research homes that are currently for sale, but to get solid comparables information, you’ll need the help of a Realtor. The records are public, but it can take up to two months to be published. A Realtor can give you up-to-the-minute information. The Dunes Marketing Group is happy to help. Just give us a call.
Have a clear understanding of the specific property.
Hunting for homes can be exciting, even overwhelming. Enjoy it. But also be prepared to become completely cool and rational when you think you’ve found the perfect Hilton Head home. You’ll need to get up close and personal and make extensive notes on the condition of this property. You’ll want to know, for example:
- Is the property “move in” ready? Can you live with it as it is now or will you need to remodel.
- What appliances, if any, will need to be replaced?
- Is there any damage? This is, after all, seaside living. Is there water, sun, or wind damage? Is the property set up with storm shutters or other protective barriers?
- What can’t you see?
Tip: Use a home inspector in the Hilton Head Island. There are many to choose from. Insist on a detailed report. And take their advice. You can then decide if you still want the property, and if so, if you want to negotiate with the seller about the repairs or you’ll pay for them yourself. Be informed. Our Realtors at the Dunes Marketing Group will be happy to provide you with a list of licensed home inspectors that work in our area.
Be clear about the most you’re willing to pay.
It is so easy to get swept up in the excitement of house hunting. When you’re shopping for a home on Hilton Head, you’re going to see some amazing properties. Have fun, enjoy yourself, but remember your budget. It’s easy to say no to that million-dollar property when you planned on spending $200,000, but what if the property is $230,000?