The Science of Bidding is the second segment of our House Buying Tips series:
When buying a house, don’t be too hasty to sign the papers–even if it seems like the perfect house. Many people get so focused on planning their lives in a potential new home that they may not look at other factors that could reveal some undesirable qualities in a new house. Do your homework first! Knowing how to bid, issues to walk away from, issues to utilize as a bargaining tool, or know if the timing is a factor will make you a well-informed buyer. We have gathered some of the best home-buying tips we’ve seen so you can get the most out of your money! Knowing how to place your opening bid, what to consider when placing a bid and how much to bid is our house buying tip #2.
Buying Secret #2: The Secret Science of Bidding
Your opening bid should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller. A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighborhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer. Also, see if the neighbors have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.
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SRC: Click to read more house buying tips.