Home buying is a daunting process for first-time buyers. We all want to buy a property at the lowest possible price. However, if you set your asking price too low, then it may offend the seller. According to the latest data released by the California Association of Realtors (C.A.R.), the real estate market is volatile. The homes in Los Angeles County are expensive. Single-family homes and condos in the Palos Verdes Peninsula are selling better and faster. So if you are looking to buy a home in the Palos Verdes Peninsula such as Rolling Hills, Rancho Palos Verdes, Manhattan Beach, etc., then you must know how to make an offer for a property on sale.
1. Determine If It is a Buyer's or Seller's Market
A buyer's market occurs when there is a drop in the property price and supply exceeds demand. A seller's market is when there are more buyers in the market than homes available for sale. A buyer's market is the most ideal option for you to make a move. There are a large number of real estate properties available for sale, so you can lower your asking price. Property sellers often make a concession to secure a buyer in the buyer's market. You can get a great property at a lower price than you would in a seller's market.
2. Determine the Current Market Value
Fair market value is one that is acceptable to both the buyer and the seller. A property may be sold above its market value when a buyer loves the house and is able to afford more. This happens in rapidly changing markets, such as Los Angeles County and the Palos Verdes Peninsula. A property is sold under market value when the supply is higher than the demands or when the homeowner is facing foreclosure. The best way to determine the current market value of, for instance, a Rolling Hills real estate property for sale, is to visit home listing sites that consider location, current market trends, and amenities for property valuation. Consider comparable neighborhood sales to gain an insight into the property market. The ideal way is to work with a trusted real estate broker. Ask your agent to provide a comparative market analysis or use the Federal Housing Agency's house price index calculator to determine the market value of a real estate property.
3. Make an Offer After Open House
Now when you know the current market value of a property in the area you are planning to buy, you can move ahead to make an offer but only after attending an open house event. An open house event is a new way of marketing a property and attract a large number of buyers. As a buyer, you can take advantage of open house events by visiting the home of your choice, inspecting the amenities, and then making a final offer. However, there are chances that someone else may make a better offer than yours, so do your best research on home valuation before making an offer.
Last but not least, ask yourself what do you want. If the home you visited recently has everything you want and you don't want to miss out on the property, then it is worth to consider the listing price by the seller.
In closing, follow the above-listed tips to buy a great home for the right price. In the end, you can always try to negotiate with the seller and if it works, you will be in a win-win situation – best home at the best price.
If you are looking for real estate for sale in Rolling Hills, Rancho Palos Verdes, Manhattan Beach and other cities in the South Bay, Greater LA, and the Palos Verdes Peninsula, then contact us at 310.702.7708. At PV Elite Group, we take pride in helping buyers, sellers, investors, and individuals who are in the market to buy, sell, and list real estate properties.