Making an Offer

You’ve found the perfect home and you’re ready to make an offer. Your REALTOR® will prove to be an invaluable resource at this stage, providing market data and expertise to help you determine the best price and terms. Things you will want to consider include:

• Market Conditions
  In a weak market, you may be able to negotiate a considerably lower price than what the seller is asking. Conversely, in a strong market, it’s risky to make a low offer; another buyer may come along at any moment with a full-price offer.
  
• Specifics of the Property
  Does the listing price take into account any known deficiencies of the home? Does the house need renovations or repairs? Is the asking price in line with similar homes, both recently sold and currently for sale?
  
• How Badly Do You Want It?
  If it truly is the perfect home, will you be disappointed if you lose the deal to another buyer? Are there other homes available that you like as well?
  
• Seller’s Motivation
  A smart seller will know better than to reveal if there is pressure to sell, and it’s not a good idea to assume a seller’s motivation. But your agent might know some relevant facts.

Unless you have made a full-price offer, the seller will probably respond with a counter-offer. Consider all of the information and decide if you are willing to increase your price and/or change your terms. This offer and counter-offer phase of the negotiation is often done verbally, with revised contracts being signed after price and terms have been accepted by both parties.