7 Tips on Making Offers to Purchase NJ Real Estate

Suggestions to guide you when placing a NJ real estate offer

 

Since purchasing a home is more than likely your costliest investment, it is important to know what to offer and when to make it. The key is to have an informed, experienced NJ real estate agent that will be able to provide guidance and expertise on market conditions and ultimately suggest a price that will get you the home you desire.

Below you will find more information on how to decide on and properly place a bid on a property:

Understand the Current NJ Real Estate Market Conditions

Typically, homes for sale in a buyer’s market are priced lower than compared to what they would be in a seller’s market. The best time to purchase a home is when the market is considered to be a “hot” buyer’s market because you will have the most leverage when placing an offer due to less competition. In contrast, a seller’s market will usually be inundated with overpriced homes because sellers know that they may very likely be able to consider multiple offers on their home, therefore providing them with leverage. This is when it is essential to submit a slightly higher proposal.

Calculate the Home’s Cost Per Square Foot

The goal of this step is to ultimately determine if the average price per square foot of homes is increasing or decreasing based on trend reports. Keep in mind that square foot values of larger homes are higher and smaller homes are lower.

Study Comparable NJ Real Estate Properties

When deciding which offer you are comfortable submitting, it is helpful to examine past sales of homes similar to the subject home. This is a practice performed by NJ real estate agents as well as appraisers. You will only want to consider homes in related areas with the same design and age sold only in the previous six months.

Determine What the Seller Purchased the NJ Real Estate Property For

Although it is not always accurate to base your offer on the price the seller originally paid for the home, your offer should coincide with the seller’s purchase price in the event the home was bought only a short time ago in a down market.

Examine the Percentage of List Price-To-Sale Price

A NJ real estate agent can provide you with a report containing statistics regarding previously listed homes and their sale price. The objective is to determine the percentage of difference between the two. A good rule of thumb to remember is that homes selling at two percent below list price could signify how negotiable the seller will be in accepting an offer.

Calculate the Balance Of the Seller’s Loan

When the balance on the seller’s loan is considered low, this can be an indication that the seller might not be very anxious to sell immediately and can afford to remain in the market. In contrast, if the balance is very high, one can presume that the seller is making out-of-pocket payments and is most likely anxious to sell so he or she would be more negotiable with offers.

Inquire About the Home’s Past

Finding out more information about the history of the home you want to place an offer on can determine how negotiable the sellers might be. For example, if a home has been on the market for a few months and has no offers, you as a potential buyer can have more bargaining power as the sellers are anxious to sell.

 

The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.