It’s one of the questions we get asked most often:
“What do you think I should offer?”
The short answer? We can’t tell you exactly what to offer.
As much as we’d love to have a magic number, the reality is that a property’s value can be different for every buyer.
What one person thinks is worth $700,000, another person might happily pay $750,000 for because it ticks all the boxes, is in the right street, or saves them renovating later.
That’s why there’s no single “correct” offer.
So how do you decide?
The first step is understanding your budget.
Your borrowing capacity and pre-approval will help determine what you can spend, but that doesn’t necessarily mean you should spend every dollar available.
It’s important to think about what you’re comfortable repaying, both now and into the future.
Do your homework
Before making an offer, it’s worth looking at what’s happening in the local market.
We can often help by providing property reports that show things like:
• Recent comparable sales in the area
• Previous sale history of the property
• Estimated property values
• Similar properties currently for sale
While this information can be incredibly useful, it’s important to remember that it’s only part of the picture.
Property reports aren’t always right
The data available online is getting better every year, but no report can tell you everything.
It doesn’t know how many people turned up to the open home, whether there are multiple offers on the table, or how much you personally love the property.
At the end of the day, a property’s value is what someone is willing to pay for it.
Our advice?
Work out your budget.
Do your research.
Think about what the property is worth to you.
Then make an offer that you’re comfortable with, regardless of whether it’s accepted or not.
Because once you’ve bought the home, the last thing you want is to be lying awake wondering whether you paid more than you were comfortable with.
If you’d like us to run a property report before you make an offer, just send through the address and we’ll see how we can help.