Santa Clarita Real Estate, Santa Clarita Luxury Homes, Valencia Real Estate, Westridge Real Estate

Making an Offer 

You’ve been looking at homes for sale and have found the one you want.  How do you decide the price you want to offer for the real estate? 

There are several factors to consider when you make an offer.  Some of these are: 

• Condition of home
• Upgrades or improvements made
• Market conditions
• Seller Motivation

Condition of Home: 

The offer you make should take the general condition of the home into consideration. Most importantly, are the plumbing and electrical systems in good working order? If there is a pool or spa, are there any major repairs to be made? Generally, cosmetic changes are not enough to seriously affect your offer.  If the entire house needs repainting, you might factor that into your offer. If you’d rather the paint scheme be more neutral, or if you prefer wallpaper rather than paint, you would not drop the offer for this type of personal preference.

Upgrades or Improvements: 

An important thing to remember when taking a remodeling or upgrade into consideration is that the amount you allow would not equal the cost of the actual upgrade. In other words, if an $18,000 deck was recently installed, you would not expect that house to be $18,000 more than a comparable home in the neighborhood. The additions or improvements that do add value are items such as additional bathrooms or an upgraded kitchen. Again, even these items don’t increase the price of the home by the cost of the upgrade or addition. An experienced agent can guide you in these matters. 

Market conditions: 

Market conditions change frequently. You’ve all heard of a “buyers market”, or a “sellers market”. How much should this affect your offer?  Obviously, if the market is seriously depressed, you might not offer the full selling price if similar homes in the area are not getting those kinds of prices. Conversely, if the market is up, you would not want to offer too little and risk someone else offering a better price and getting the home of your dreams. Again, a knowledgeable agent can assist you in identifying the market conditions in your area. 

Seller Motivation: 

What buyer doesn’t dream of a motivated seller? Be aware – often, wording such as “motivated seller” just means someone knows how to word an ad so it gets a lot of activity. Talk to your agent and be aware of current market conditions, the prices of homes in the area, and base your offer on these criteria more than assuming the seller is motivated to take a low offer.  If the sellers in the area are getting their asking price or more, and if houses are in high demand in the area, you do not want to offer too low a price – someone else will grab up the home with a higher offer.

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copyright © Michael Feicco 2006