So you've found the home you've always wanted and you are ready to make an offer. Before you do, you want to know what kind of competition you may be dealing with. While your agent cannot disclose to you the amounts of any offers that the homeowner or bank has received, they can help give you insight to guide you in assessing how much you should offer for the home and how quickly you need to move on your intentions. Here are 3 things you need to ask your real estate agent once you've located your dream home.
Your real estate agent cannot tell you the amount of any cash offers that have been made, but they can let you know that they exist. A cash offer from another interested party can influence your urgency to put in an offer yourself. Keep in mind that if a cash offer has been placed and then declined, it likely means that the bank or homeowner is not willing to negotiate much under the asking price of the home, which can affect your offering abilities.
How much the home was last sold for
Your real estate agent can tell you how much the home was sold for the last time it was sold. This gives you an idea of what current home values are and allows you to see how much you would really be paying for any current upgrades that have increased the home's value. If today's asking price is lower than what the house last sold for, this can be a red flag that there are issues with the house that can be costly to repair. If your real estate agent cannot answer this question for you, you can look up the home online to see when it was last sold and for how much using popular real estate sites.
What they feel the home is worth
A trusted real estate agent who is skilled in their field will be honest with you about what they believe the home is actually worth. This can help you feel more comfortable working with them and can give you an idea of whether your offer is realistically too low or if you are willing to pay too much for your dream home. While their opinion may give you greater insight as to what you are potentially buying, remember that the real estate's valuation of the home and what the homeowner or bank wants for it are two different topics entirely.