If you want to shop for a home, do you want one a finished one or one that needs work? If you do not mind buying a house that needs some work, you must learn how to negotiate on the price. Hiring an experienced real estate agent helps, and here are several tips to consider as you prepare to write an offer for a home that needs work.
1. Disregard the Asking Price
When a homeowner lists their house for sale, they choose the asking price. While their real estate agents might suggest these prices, a home's asking price is not set in stone. In some cases, the asking prices might be accurate. In other situations, the asking prices might be off by a lot. As you set out to buy a home that needs work, you might want to disregard the asking price. While this price means something, it does not necessarily reflect the home's actual value.
Instead of basing your offer amount on the asking price, you should base it on the actual value. If you are not sure what the value is, talk to your real estate agent and an appraiser. These experts can provide more information about the going rates of homes right now.
2. Know the Issues a Home Has and the Work It Needs
Secondly, you should not put in an offer until you know the work the house needs and the issues it has. If you want to find out exactly what the issues are, spend a few hours at the home. You can also take a contractor or trusted friend with you to view the home. Once you think you know the work it needs, you can write an offer to buy it. It is helpful to include a home inspection contingency with the offer, as this allows you to get the home inspected by a professional.
3. Update Your Offer After the Home Inspection
If you learn that the home has more issues than you expected, you can modify your purchase offer to reflect the additional work. For example, if you discover another $20,000 in repairs that you were not expecting, you can renegotiate with the seller to pay a lower price. You can ask the seller to drop the price by this amount or less.
If you have questions about buying a home that needs work, talk to your real estate agent. Your agent can provide tips and suggestions to help you buy a home for sale.