To calculate your initial offer, you can take guidance from your real estate agent but of course it is your own instinct that will finally decide what you think is a fair price for the home that you plan to own. To calculate the offer price, you must keep several factors in mind:
- The price that homes like yours typically sell for in that area
- The condition of the home
- How long the home has been on the market
- Financing terms
- Seller’s Situation
This is also a good time to hire a due diligence expert / private investigator who can probe all financial and legal matters pertaining to the title and ownership rights of the property and also find out whether the home has any ongoing legal dispute or whether the developer has flouted any environmental or legal policy which could embroil the property in a future legal problem. By the time you are ready to make an offer you must have a good idea of what the home is worth and what you can afford to pay for it. Also a bit of give-and-take negotiation is fair game and is common when buying a home. The buyers and seller usually go back and forth until they can agree on a final price.
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