Finding the house you want to make your dream home can be an incredibly exciting moment. Making an offer on that house however, can be a daunting and stressful task. The written offer is a step in the home buying process that requires the finesse, experience and negotiating skills of a REALTOR® professional.
There are several factors to consider when deciding how much to offer: the listing price of the home, the prices of comparable properties that have recently sold, and of course what you can afford.
Once you have considered the factors at hand, it is time to decide on a number. If there is a shortage of houses on the market, and the "days on market" is low you may have to offer no less than the asking price. If there are a lot of houses on the market and the "days on market" is high you there may be more room for negotiations. Either way you should be mentally prepared for negotiations, and in some cases even bidding wars, which can erupt among aggressive buyers.
Considering the seller's needs is the best way to achieve an advantage in the competition. Your ability to close the deal quickly is often an advantage. For example: buying with all cash or having your loan pre-approved tells the seller that you are a serious buyer. Your flexibility and accommodation of seller time frames can also be beneficial. For example: extending the closing time frame for a party that cannot move for several months; or making your offer for the property 'as is', meaning you will pay for any needed repairs.
In any market, you will want to bid to win. Be sure to discuss the best strategy for your offer with your REALTOR®.
This information is meant as a guide. Although deemed reliable, information may not be accurate for your specific market or property type. Please consult a REALTOR® professional for more information on making a written offer.