Choosing the Price for Your Next Home

Consider this checklist before choosing the price for your next home:

1. How much are you comfortable paying? Using EveryHome’s helpful Closing Cost calculator is one way to determine your monthly payment, and your lender would be happy to provide a Good Faith Estimate (GFE) for you as well. An easy rule of thumb is that an extra $1,000 in sale price translates into approximately a $5 increase in monthly payment (with the current interest rates). Remember, taxes and homeowners’ association fees will often dictate the monthly payment more than a modest price difference.

2. How long has the home been on the market and has it dropped significantly in asking price? Typically, if a home just recently hit the market, it’s less likely that a seller will accept a low offer. Similarly, a buyer may have a bit more wiggle room if the home has been on the market longer.

3. Is the seller expecting any other offers to come in soon? Your EveryHome agent can help provide the answers for this one, and another factor to consider is how many showings the home has had lately. In “hot” markets, the average offer price is quite a bit higher than in slower markets where homes may spend more time on the market.

As always, your EveryHome agent would love to be of assistance. He or she can scout out any other interest in the home, as well as provide you the statistics for average offer price over original asking price. Best of luck in your home search!