How to Make an Offer on a Home

Reader Question: I am looking at a home priced at $138,900. I need to know how to determine a starting bid on the home?

If you are using a real estate agent, consult with him or her on the matter. Making an offer on a home is one of the key areas where an agent can help.

If you're not using an agent, you'll have to do the research yourself. The asking price for the home should be determined by the recent comparable sales in the area. For example, if you are looking to make an offer on a 4-bedroom, 2-bath home with 2500 square feet, your real estate professional will pull recent sales in the neighborhood and/or nearby similar neighborhoods to determine the fair market value of the home you would like to buy.

If you are buying on your own, without the help of an agent, you will have to find some way to look at comparable sales in the area. There are also some "house value" websites that can give you a ballpark idea of what a home is worth, based on recent sales.

Of course you will want to consider things such as upgrades to the home, larger lot size, pool and other improvements when coming up with your asking price.