How Much?
Find out what other homes have sold for in the area, how much money you might have to put into repairs or renovations. These considerations factor in with how much you're comfortable spending. Also, it helps to know the features that help or hurt resale. In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may affect the home sale and future value. In addition to sale prices for other homes, there are several ways you can determine a good amount to offer:
- The condition of the house. Is the home in move-in condition,
in need of paint and other cosmetic improvements, or a
fixer-upper that needs some real work?
- The market. If you are in a buyer's market — where there
are more homes for sale than there are people to buy them
prices are probably stable or falling. If you are in a seller's market — where there are more
buyers looking for homes than there are homes for sale — prices are probably moving
upward.
- Your ceiling. If you've gotten a credit pre-approval, you know how much you can borrow for
your home purchase. Of course, you may not be comfortable paying as much as you've been
approved to borrow, so think carefully about your financial situation before making an offer.
Next, decide how much you are willing to pay for a home. Remember, the advertised price of a house is just a starting point – it may take quite a bit of negotiating to arrive at a final cost.