Picture this: you’re in the market for your first home. You’ve made your “wants” and “needs” checklists. You’ve walked through dozens of homes, but none of them have quite stood out to you. Then finally, you walk through the perfect home. Beautifully laid out, featuring all of your style and functional needs.
Time to make an offer! But…for what amount…???
One scenario that can happen *more often in this crazy market* is a multiple offer situation. In this case you should offer your absolute highest price, as you usually (approx. 98% of the time) only have one shot to win over the seller. Before you make the decision to jump in and fight, it’s important that you make sure this is THE house for you, and how much you’re willing to pay for it.
Here are a few things to think about when considering how much you’re willing to pay:
1. Does the price match the value… to me?
Often times, homes are priced based on similar homes nearby, market trends and surrounding factors such as neighbourhood, parks and schools, etc. While these factors make sense and are important to consider, it’s also crucial that you sit down and ask yourself “is this home worth that price to MY specific needs?”
2. What is the structure like?
If the home in question has new flooring, updated hardware and freshly painted walls—amazing. But don’t forget to ask about/look at the structural details such as age of windows/doors/roof and condition of basement/foundation and attic spaces. All of these things could cost you extra money after purchase so you want to make sure you know what you are getting yourself into.
3. HVAC, Plumbing and Electrical?
Another thing to pay close attention to is how old the HVAC components are and what the wiring and plumbing is? You want to know if the wiring is aluminum or copper and if the plumbing is up to date and not galvanized.
The Home Inspection will help with #2/#3 but if you opt out of this condition, because you are in a bidding war, please make sure to understand these things regardless (by asking your agent to speak to the listing agent).
4. Nearby Properties and Amenities
Neighbourhood demographics, nearby schools and parks, other nearby properties; even though these things don’t directly relate to your home, are all factors that could affect your resale value once the home is purchased. Make sure your location location location is perfect for you and the amount you are willing to pay.
5. Nuisance Factors…
Is the home in question close to a highway that is loud at night? Does the neighbour have a dog that loves to bark? Are you on a street that is a direct commuting path for the late-night bar crowd? Don’t forget to ask about these often-forgotten factors of life in that home!
Hiring a real estate agent to help with your home search can ensure someone is there to remind you of the important details when your adrenaline is on high during a viewing. Real estate agents are trained to pay attention to the small details and help you hash out the big picture without bias.
If you have questions about a home, or are looking to hire an agent, contact me today! I’m always happy to help.
I was born and raised in Saugeen Shores. I’ve been analyzing the market for years and am familiar with every unique aspect the community has to offer. I am passionate about real estate and finding you your dream home. I also have a background in interior design. This means I can not only help you find the perfect home, but if the home isn’t move-in ready when purchased, I can help you envision its potential and work with you to make it your ideal space. If you’re selling a home, my knack for interior design will shine through when staging the home and adding finishing touches prior to listing. If you have questions about the local market, or are looking to buy or sell your home, contact me! I’m happy to help.