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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Finding the home you’d like to buy is the easy part. Determining how much to bid on it could be a challenge. Here’s how to make a bid on the home price that you and the seller can agree on. Take the market s temperature
Part of what determines a home’s worth is how hot or cold the market is. In a hot market, sellers might not take any offer less than the listed home price, and may receive multiple offers. In a buyer’s market, sellers are more likely to accept below-asking offers. You shouldn’t make an offer so far below market value that it’s insulting. “Still, some people list their houses too high, so it’s more important to know the house’s true value rather than worry about offending a seller seeking too much,” says Benjamin Clark, former president of the Avondale, Arizona-based National Association of Exclusive Buyers Agents. Look at comparable sales
To gauge a house’s worth, look at how much houses in the area with similar features have sold for in the past six months. They should truly be comparable. Don’t compare a Victorian with original kitchen to a remodeled one with state-of-the-art appliances. Compare home prices to what they actually sold for to see whether they’re selling over or under list price and by what percentage, says Ilona Bray, co-author of “Nolo’s Essential Guide to Buying Your First Home.” Ask around the neighborhood
Neighbors can tell you about noise levels, crime rates, schools and upcoming construction, and they often know things local authorities can’t tell you,” says Bray. If you find a problem, you can reduce your offer or opt not to bid. Learn the seller s situation
Find out all you can about the seller, like why he put it on the market, how much equity he has in it and how long the house has been for sale,” says Bray. If it has been on the market for a while, and the seller has already moved out or has bid on another home, that’s a good time to bid low on the home price. Ask your agent s opinion
An experienced agent can give good advice about a reasonable offer. If you can, try working with a buyer’s agent. “The listing agent is obligated to get a good price for the seller,” says Clark. “A buyer’s agent will spend more time researching price negotiation and get more favorable terms for you.” Protect yourself with contingencies
If you agree to purchase a house but then find out there’s an expensive repair job lurking under the eaves, protect yourself by including a list of contingencies in your home price offer. These are conditions that must be met before the deal is final. To sweeten your offer, let them know if you’re preapproved and if you can close the house in less than 30 or 60 days. Clark recommends requiring a home inspection and an appraisal to make sure the house is in good condition and worth the bid you’ve made. Related Links: How much house could I get for $400,000? Related Articles: SHARE: Vanessa Richardson Related Articles