Make an Offer
When you’ve found a house you really want, it’s time to make the offer. How much you offer may depend on a number of factors:
Is the asking price fair? Here’s where the legwork you put in while shopping for a home pays off. Decide whether this house is priced right or out of line in the current marketplace. We can look at what are known as "comparables" to help determine if a home in which you're interested is priced "right." Comparables are simply the prices homes near the house you're interested in sold for in recent weeks and months. Comparables can be wonderful tools when it comes to negotiating a sales price: "You're asking $400,000, but the house up the street built the same year with the same square footage sold a month ago for $375,000."
Is the house in good condition? Is this house in move-in condition or will it need a lot of work? Take any costs of improvement into consideration when deciding your offer price.
Has it been on the market long? Usually the longer a house has been on the market, the more likely it is the owner will accept a lower offer. Or it may be just overpriced for the market.
Is it a seller’s or buyer’s market? If the houses you’re interested in are being bought as soon as they’re listed, that means you’ve got a lot of competition from other buyers; offer accordingly. If houses aren’t selling fast, you may have more leverage in negotiating a lower price.
Once you’ve determined how much you’d like to offer, work with your real estate professional to submit the proper information. This includes:
- A complete, legal description of the house
- The amount of earnest money you’re paying
- The down payment and financing details
- A proposed move-in date
- The price you’re offering
- A proposed closing date
- The length of time your offer is valid
- Details of the deal
This can be just the beginning of the negotiation process. The seller has three options: accept your offer, counter your offer, or reject your offer. I'll strategize with you on the best way to present your offer for a good outcome.