My Confession
My family relocated to San Antonio in 2005. Prior to that, my wife and I had been long time Realtors in California. When we moved to Texas, we basically had to start over and take new classes to get our Texas real estate licenses. We wanted to buy a home as soon as possible. It did not take long to find a home we liked.
How much to offer on a house in San Antonio
Even with our prior experience, we overpaid for our first Texas home!
We found a home that fit what we were looking for. We called the Realtor’s office on the For Sale sign. Since we did not know the San Antonio values (at that time), nor have access to the San Antonio MLS (as we were still taking our classes to get our Texas Real Estate License), we depended on the same Broker that represented the Seller.
Although the Broker did nothing wrong, we felt we were not given any advice that would favor us. On our behalf, the agent contacted an independent Appraisal company for us. The Appraiser’s price came in at the same price we offered. Our deal closed.
New Found Knowledge
Soon afterward we got our Texas Real Estate License and had access to the MLS and decided to review our Appraisal. We discovered that some of the comparable homes the Appraiser used were not from the subdivision we purchased in, but from another more expensive subdivision. That is how the sales price came in to the price we offered, on the appraisal. The appraisal influenced our offer. We vowed to not let that happen to any clients we represent.
How Much to Offer on a House in San Antonio
Initial Thoughts
We recognize some homebuyers save money for a long time before purchasing a home. Often the home search process can take several weeks or longer. Then buyers finally find that home that works for them and they decide to make an offer. Buyers are not sure how much to offer on a house. Because if you offer;
- Offer too low: You may lose the chance to buy that home because another offer may come in higher or worse, because the seller gets upset and refuses to respond to your “too low” offer.
- Offer too high: When your offer is immediately accepted, you will wonder if you should have offered less.
Suggested Research
First, choose a Buyer’s Agent (not Seller’s agent) to represent you.
For a particular property ask your Realtor to provide sold home sales prices like the home that interests you.
You should ask your Realtor to search the MLS you get the answers to these questions:
- How long has the Seller been trying to sell?
If the home has been on the market a long time, has the price been reduced, or could there be problems with the house.
- How much does the Seller owe?
If the loan amount due is same as what you want to offer, you may be wasting your time.
- Why is the Seller selling?
Is it a necessary move, financial hardship, employment relocation?
- Does the Seller live in the house or is it vacant?
If home is vacant, and seller is paying mortgage out of pocket, could be a motivated Seller.
Determine the Subdivision Values
Ask for printed copies of all comparable Sales within the Subdivision of the home that interests you.
- Comparable sales from 12 months ago
- Comparable sales from 6 months ago
- Comparable sales within 3 months ago
Determine if the neighborhood trend is stable, going up or going down?
Do Your Homework
Unlike the mistakes I made, I encourage you to ask more questions, do more research, and use that knowledge to make your offer. And do not use the same real estate agent that the seller is using. The information from the local MLS is much more reliable that sites like Trulia, or Zillow.com, because the local MLS has more updated information.
This is not an exact science, but with the right information, you will know how much to offer on a house in San Antonio.