Once you've found a house you would like to buy, you’ll want your first offer to be accepted. Aside from not wanting to lose out on a good house, you don't want to go back to browsing homes for sale in search of another winner. You can save yourself time by knowing how to make a good opening bid on a home for sale.
Opening Bids Shouldn't Be Too Low
After you make a bid on a home for sale, the seller will either counter, accept, or reject. This is why it's important to carefully consider your opening bid. You wouldn't want to make an opening bid that is too low because it could be rejected in favor of another bid.
Some sellers are also offended when someone opens a bid that is much lower than the property's value. Real estate experts advise that home buyers avoid bidding more than 10% under the asking price.
Who Really Has Your Best Interests in Mind
When you're ready to make an opening bid on a home for sale, it's a good idea to consult with an exclusive buyer's agent. Real estate agents don't have a fiduciary relationship with clients and listing agents must be loyal to the seller.
An exclusive buyer's agent, in contrast, is bound by the law to not withhold any information from buyers that would be an advantage to them. Therefore, it's in your best interest to receive guidance from an exclusive buyer's agent on how much to offer for the opening bid.
Making an opening bid on homes for sale is easiest when you use the services of an exclusive buyer's agent because their loyalty exclusively belongs to the home buyer. An exclusive buyer's agent is also very knowledgeable about real estate and will know what an acceptable opening bid is.
Understanding the Offer Process: Advice on Preparation & Strategy
4 Rules to Live By When Making an Offer on a House
What is an Exclusive Buyer Agent?