Four Factors That Affect Your Offer Price in Lakeland TN 38002 By Lakeland TN Real Estate Expert Chris Griffith with First National Realty
When you've found a home in Lakeland TN you like and you could see yourself living in for the foreseeable future, the next step is to make an offer on the home. You might be tempted to offer a price lower than the seller's asking price, simply because you've heard that you're supposed to negotiate the price. However, there's more to an offer price than lowballing the asking price. The price that you offer on the home will be influenced by several factors.
Property Condition
After viewing the home, you should have an idea of how it compares to other homes in the Lakeland TN area and the neighborhood. You don't have to do much analysis, just determine if it's above, average, or below the other homes in the market. Find out the recent selling price of homes in the neighborhood. If you rated the property you are considering as average, your offer price should be along the same lines as those that have already been sold. As you consider the condition of the home, look at things like bedroom doors and door knobs, fixtures, light switches, and cabinets. These will give a good indication as to the condition of the home and the offer price.
Market Conditions
In a seller's market, there are often multiple offers on a property, many of which will be above the asking price. In a buyer's market, homes remain on the market for a longer period of time. You have more flexibility to negotiate in a buyer's market. Still, there is the steady market when there are no rules. Depending on the condition of the market, you may increase or decrease your offer price. This is why you need to contact me because no one else on the web has as an extensive and comprehensive understanding of the Lakeland TN real estate market.
Home Improvements
Minor cosmetic changes like new paint and carpet don't have a major factor on the home price. On the other hand, if the owner has made significant changes such as the addition of a new bedroom or bathroom, finishing the basement, or screening in a patio, the offer price should increase beyond the average home. You don't have to increase the offer price dollar for dollar on the cost of these additions. Rarely does $10,000 in home improvements add $10,000 to the value or offer price of a home.
Seller Motivation
A motivated seller won't allow you to knock down your offer price by a very large amount of money. That doesn't mean, though, that you won't be able to offer a few thousand dollars below the asking price. Sellers that are relocating are often motivated to sell their homes for less, especially if their new mortgage will be starting soon. Be careful of ads that use phrases that indicate they are motivated to sell, often these are tactics used to generate leads.
Consider each of these four factors as you determine the price you want to offer for the home. Get help on this part of the process, as you consider each of these factors when considering the offer price to the sellers and also keep in mind any mortgage pre-approval amount that you have been given by the lender.
There is a lot of free information available to you about buying, selling or investing in Lakeland TN real estate. For complete information about the Lakeland TN real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Lakeland TN Real Estate. Contact me on my cell 901-461-5590 or email me Chris@FirstNationalRealty.com
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