![]() You’ll also want to know whether the home needs repairs and whether you can cover the cost of them. Number of comps: Your real estate agent should try to find between five and 10 homes to compare to help you calculate your offer.ĭon’t Miss: How Much Does It Cost to Buy a Home?Ĥ.Square footage: Ideally, you should compare homes within 10% of your prospective home’s square footage.Proximity: Homes within a half-mile to one-mile radius will provide a good estimate for the selling price in your area.Timeline: Check the selling price of homes that have sold within the last three months.If you find several similar homes nearby that are priced at $375,000, you can make the case the home is only worth that amount in the current market. Research how much comparable homes have sold forīefore making an offer, your real estate agent will check “comps,” or comparable listings in your neighborhood, to guide your offer and help you negotiate.įor example, let’s say you’re interested in a three-bedroom, two-bathroom house that measures 1,600 square feet. But you might need to spend less if you have debts.ģ. As a general rule, your monthly mortgage payment - including the principal and interest, property taxes, and homeowners insurance - should come out to no more than 30% of your monthly pre-tax income. It’s a good idea to estimate the monthly payment and make sure it fits comfortably within your budget. So if you and a partner earn a combined $150,000 a year, then you should look at homes listed at $300,000 to $450,000. Some financial experts use a rule of thumb that says your home should cost no more than two or three times your annual household income. You won’t be able to offer more than you can afford, so it’s important to determine your budget upfront. Get a sense of the property’s condition.Research how much comparable homes have sold for.Here are some tips for landing your dream home: But by preparing your finances and researching the market in your area, you can make an offer that’s just right. ![]() Offer too much, and you might accidentally overpay. ![]() Offer too little, and you could lose out on a great home. When deciding how much to offer on a house, you might feel like you’re walking a tightrope. NMLS # 1681276, is referred to here as "Credible." Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Our goal is to give you the tools and confidence you need to improve your finances.
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