How to Make Strategic Offers on Residential Property

For most people, buying residential property represents their largest single financial commitment. It is important to approach your residential property purchase strategically. A well-considered, well-prepared offer can help you find the best deal on the most appropriate residential property for you.

Take Your Time

Strategic moves are carefully considered moves. Residential properties range in price from tens of thousands to millions of dollars. The value of your purchase will swing with local, regional and national economic conditions.

Additionally, the condition of the home will affect its current value and the potential for increased value. It is important to enter the process of purchasing your residential property with patience and commitment to gather needed information, line up required resources and act based on market knowledge. There is no such thing as a deal that is too good to pass up, and there will always be another deal to pursue.

Know What You Want

Residential property purchase considerations vary with every individual. There are a wide range of choices:

  • Are you interested in a new home?
  • An older home you can fix up?
  • A home to stay in?
  • A home to sell quickly?
  • A second home?
  • An investment property?
  • A home lot? 

The first step to a strategic offer on a residential property is to clearly define what your goals for the property are. What you want must be set against what you can reasonable afford and what the risks are in the current market. These factors will help you decide how much per square foot you can spend, how much you can put down, how much you can put into the house in improvement and how likely you are to see an appreciation in the value of your residential property.

Gather Your Data

You must know your local market to make a strategic offer on a residential property. Your local board of Realtors will have average home sale prices, original asking prices, and length of times homes are spending on the market and the square footage of houses. With that information, you can determine an average cost per square foot. You must know this information for the particular neighborhood that interests you so that you do not overpay.

Personal inspection of your chosen neighborhood is a must. Is the typical residential property there gaining or losing value? Are people maintain and improving their homes or is the community deteriorating? What are the crime trends?

The more data you have the better offer you can make and the better you’ll know if you’ve found a good deal.

Arrange Your Financing

It is important to know what you can afford. Work with a local lender to prequalify for a given mortgage payment. Get all of your information in so that you can move quickly if you need to. You will still have to plug the particulars of your residential property into the application, and lenders will have to be convinced it is a sound investment. 

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