Buying a home is often met with a seemingly endless list of questions about every detail of the process because of how pricey it can be. From inquiries about a listing’s details all the way to a few questions about hidden defects, one can never really run out of questions.
One particular inquiry that pops up often is: “How can I know what this house is really worth before making an offer?”
There’s nothing wrong with making an offer that’s as accurate and wallet-friendly as possible. As a matter of fact, knowing the true value of a home is now a vital component of the home buying process. Unfortunately, most prospective home buyers end up paying more than they should for their purchase because, at the end of the day, the agent or seller knows the accurate value better than they do.
Thankfully, there are several ways you can avoid the entire frustrating guesswork process that comes with gauging the worth of a home that you’re looking at—most of which are simpler and easier than you might expect.
To ensure that you have ample room to negotiate when purchasing a home, here are a few ways you can determine the true value of a home before making an offer:
- Carry out a pre-offer inspection
If a homeowner or agent permits pre-offer inspections with the help of a professional appraiser, then it’s safe to say that you’re going to get a proper, accurate estimation of the listing’s true value. Doing so can give you vital footing for settling on the right price with a fair offer for the home itself. Read our blogs about inspections here.
- Do a bit of comparative research with other homes in the area
Any listing, more often than not, will have a set of comparable homes—with regards to size, the number of bedrooms, features, and year built—in the same area that can be used to determine its true value. With enough searching online, you’ll be able to find comparable properties that you can base your offer on in order to negotiate for a fair price. Get a free comparative market analysis of your home today.
- Check out how long the property has been listed on the market
Another effective way to determine the true price of a home before making an offer is to check how long the property has been sitting for sale.
While the question of “how long” may be subjective to some extent, any home that has been listed for sale for a period of more than six months can be guaranteed as overpriced, according to the rule of thumb. Should you discover that the home has been listed for more than half of a year at the same price, then you are free to lower your offer by a significant amount.
Final words
Determining the true value of a home before making an offer is a fairly tricky task unless you have the right knowledge of simple yet accurate methods to determine an accurate figure. Before you make an offer on a home that you’ve wanted to invest in, refer to this guide first and use every method mentioned to come up with a more accurate figure!
If you’re looking for a top-rated real estate agents in Langley to help you properly determine the price of a house, get in touch with us today! We’re happy to help.