After finding the perfect home or piece of property in Illinois, buyers will need to offer the seller an amount they think the property is worth. For those buying property, not understanding the market, offering an extremely low bid or failing to understand how much the home is worth can harm a purchaser’s ability to gain the seller’s consent.

To elevate their chances of the seller approving an offer, buyers should be aware of what makes a good bid. 

Analyze the current market 

Determining how much to bid on a home can be a challenge. Homebuyers should analyze the current real estate market in their area before deciding on an amount. The bid will be influenced by whether it is a buyer or seller’s market. In a seller’s market, the person putting up their home for sale may be bombarded by multiple offers on a daily basis. Buyers have to present a higher bid in order to win the property. In a buyer’s market, there are more houses on the market than buyers. This gives buyers more power and they can offer a lower bid.

Compare prices

During the real estate purchasing process, buyers should consider how much similar homes in the area have sold for over the past six months. By comparing the rise and fall of home prices, buyers can put together a price range that it is fair for the property they are interested in. To find out this information, buyers can research local real estate databases or ask a real estate agent. 

Make the offer stand out

 An offer that is fair and comparable to the prices of what other homes are selling for in the same neighborhood can be easily overlooked by a seller, especially in a market that favors those selling real estate. To make an offer stand out, buyers should consider the following strategies:

• Write a personalized letter to the seller that states why they want to live in that particular home and what features they like about it.
• Add an “as is” contingency into the offer that informs the seller that they do not have to make any repairs on the property before making the sale.
• Let the seller know they are willing to pay more for the home if necessary by including an escalation clause in the contract.
• Gain preapproval for a loan before submitting an offer.

With real estate transactions, it can be difficult to know how much to bid on a home without offending the seller. In this situation, buyers may benefit from working with an attorney who can help them understand the components of making a fair offer.