Making an offer on that next home isn't always about asking for the lowest price. There are a lot of factors that should be considered before that final price is presented. If it is a house you love and a house you want to buy absolutely be sure the offer price you present is something you can live with. Here are 4 factors you must consider before submitting that offer price.



1) What Condition is the Property in?

You probably have been through a number of houses in your area and have a pretty good idea of what the condition of properties are in the neighborhood. If not it's wise to look at other properties to get a sense of how the condition of other properties compare to each other. Based on condition and comparable selling prices you should be able to come up with a pretty fair offer price.

Common sense would tell us that a property in normal condition would have a price that is comparable to other homes that have recently sold. Some great indicators of wear and tear are the walls, do they look faded and have chips and scratches on them. Other indicators include checking out how warn the flooring is comparable the age of the house, how well the door knobs, light fixtures and light switches have held up.

2) What is the Market Like?

Generally an offer price will change based on what type of market your area is in. A Seller's market usually garners more than one offer, subsequently the offers on properties will go up. Alternatively in a buyer's market you might be able to lower the offer price, more inventory and less buyer's should present a deal. These of course are generalities and each property is different, you may find yourself in a great position to buy but the seller won't budge.

3) What Upgrades and Home Improvements Have Been Done

If the home has had some major home improvements or additions that have increased the value, then these will have to be taken into consideration when figuring out your offer price. A homeowner has done this for 2 reasons, 1) They wanted to make the house more comfortable and livable for them. 2) They had resell in mind. Some improvements that you should be aware of that will increase the value, additions of bedrooms and bathrooms, basement finishing, and kitchen remodels.

4) How Motivated is the Seller

A motivated seller will generally take offers that are below asking price, but in this case don't get greedy. Just because a homeowner is on his way across the country doesn't mean they are always going to take a low ball offer. So when making the offer on a house you really want, try cutting it by a few thousand dollars and you should be walking into that new home.

So when that next offer price comes to mind on that potential new home make sure to take a few minutes to consider the following, it might be the difference between getting the house and losing it.