This is a tricky question!! But basically speaking you want to always be offering what the market value is.
This is also very relevant to how much deposit you have.
If you have 20% deposit then you can offer up to your maximum which is calculated as follows (deposit amount /20% = Maximum purchase amount). Don’t get too excited and overspend on a property as this may turn your solid investment into a solid liability
If you have 10% deposit then you really need to dial in closely to what the actual market rate of the house is. This is due to the requirement for an independent Registered Valuation of the property.
The banks all want to ensure if you have less than 20% equity then you are not over paying for the home. If the valuation is less than the purchase price they will only lend up to 90% of the valuation.
You either renegotiate the sale price of the property, scramble around to find some more cash to settle or the deal falls over.
If you are unsure of what to offer ask the agent for a CMA (comparative market analysis).
This will tell you what other properties have sold in the area with the same number of bedrooms, bathrooms, living areas and garages.
Do yourself a favour and align yourself with a great agent to help you through the process.
This will save you a significant amount of stress and make the process as easy as possible.
Any further questions just give me a call.