For many property buyers in Illinois, finding the right home is easy. However, determining what to bid on a piece of residential property is often a particularly difficult challenge. Property buyers who are ready to place a bid on a home should consider the market, the selling prices of similar homes in the area and try to find out more about the seller in order to come up with an offer that the seller agrees with.

Analyze the current market

A large part of a home’s worth is determined by the current state of the real estate market. For example, in a buyer’s market, a seller may be more likely to accept an offer that is below their asking price. In comparison, in a seller’s market, those buying real estate may find that they have to compete with several other buyers during the bidding process.

Compare the prices of similar homes

The value of a home can also be gauged by the selling prices of homes with similar features that were put on the market within the past six months. However, when comparing the selling prices of homes, buyers should be diligent about finding homes that are truly similar. For example, a home built in the 1950’s with its original kitchen will likely be worth less than a home built in the 1980’s with a fully remodeled kitchen, even if they both include the same amount of square footage and number of bedrooms.

Talk with the neighbors

Factors such as the level of noise in the neighborhood, crime rates and any planned construction projects can impact how much a home is worth. Before bidding on property, those interested in buying real estate should speak with residents in the area to find out more information that could affect their bid, but that is not necessarily available from local authorities.

Learn more about the situation of the seller

Before their bid is finalized, property buyers should try to find out more about the seller’s situation. If possible, sellers should discover the following information:

  • Why the home was put on the market
  • How long the property has been up for sale
  • If the seller is still living in the home or if they have already moved out

This information can often impact whether or not the seller is willing to accept a bid that is below the asking price and if there is competition with other buyers.

Bidding the right price on a home is an extremely important aspect of the real estate purchasing process. Buyers who are unsure of what to bid on a piece of property should consider speaking with an attorney who can provide direction.