How To Make An Offer On A House That Needs Some Work

Real Estate Blog

As you shop for a house to buy, you might want to look at dozens of different ones before choosing the one you want to make an offer on. If you do this, you will eventually find the house you love the most, but what if this particular house needs some work? Buying real estate that needs some work is not a bad thing to do, but you might want to consider using some of these tips as you prepare your offer for the house.

Compare the asking price to the home's real value

If you want to offer less on the house because it needs work, you will need to take one step before you do this. This step involves determining how much this house is really worth in the condition it is currently in. If the owner of the house already factored in the repairs the home needs, he or she may have adjusted the asking price for this. If the owner didn't adjust the price to make up for the work it needs, you might have some room for negotiating.

This is an important step to take, but it is also a hard step to take. The hardest part is trying to determine how much the house is really worth in its current condition, but your real estate agent might be able to help you with this.

Consider which strategy to use

If the house is overpriced due to the work it needs, there are several different strategies you could use to make up for the work it needs. Here are the main strategies to consider:

  1. Ask the owner to fix the problems – You could write up a full-price offer with a continency that states the owner must fix the specific problems you list on the offer.
  2. Deduct the amount for the repairs from the asking price – The other strategy you could use is deducting the repairs from the asking price. For example, if the owner is asking $200,000 and the house needs $50,000 in work, you could offer to buy the house as-is for $150,000.

The best way to handle a deal like this is by talking to your real estate agent to create a good plan and strategy. Real estate agents are experienced with negotiating, and your agent might be able to give you some great ideas, tips, and suggestions for buying a house that needs some work. 

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18 January 2018

Improving Your Real Estate Holdings

About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.