Attend Open Houses

  • By attending open houses, buyers can understand the actual condition of homes in the market. Keep the handouts given at open houses and then monitor the property around the area. Do research on the sales prices around the area/neighbourhood.

Making an offer

Find Home Sales Prices

  • Look at website, newspaper advertisements to get a feel for the average asking prices of homes. However, usually the asking prices of homes are often inflated for negotiation on the prices. Main focus should be on the sales prices of similar homes that have been sold recently.
  • Search for records around the area are available online or ask your real estate agent from his company database or research. Use the information to understand where the prices of  roperty is heading now, however don’t make the mistake of  putting in an offer on the amount that the seller has paid for a property– usually it doesn’t work because no sellers would want to sell at the price he/she bought and the additional cost of interest on the mortgage that the seller has incurred .
  • Buying a property/home is a forecast of future value.

Valuation Report

  • It’s useful to have a valuation report before making an offer and also understand how different banks value the property on sale. Ensure the results are kept confidential and bear in mind that the opinions of different valuers often vary.

Putting in a Low vs. High Offer

  • Putting in a LOW offer would show insincerity of the purchase – “Testing water”. This would put off the seller and would potentially create problems in future negotiations if the seller interprets the low offer as a personal insult. However, if the property is over-priced and the offer is the maximum you can offer, it’s alright. Engage a professional real estate agent to negotiate the price for you so that we can be the one to block/filter off any insults or comments from the sellers.
  • Putting in a HIGH offer wouldn’t probably get the base price from the sellers. However, if you are really interested in the house, and if there are a number of offers for the house, putting in an offer at or slightly above the asking price might be necessary. Try to consult your real estate agent as much as possible  before putting in an offer.

Sellers Motivation:

  • How long has the house been listed in the market? If it’s only a short period of time the sellers might not be ready to lower the price.
  • How does the house compare with others for sale in the same neighborhood? Too high or too low? Try to understand the reason.
  • Any major renovations required.
  • Number of years lease left.
  • Neighborhood development. Foresee any home values climbing, stagnant, or possibly taking a downturn.

Helpful tips
SEE, ANALYSE and COMPARE each property/home’s condition and asking price. Most of the time, your final offer will likely involve a good deal of gut instinct. Whether this house is suitable for you, you will probably know the answer the moment you step into the house.