Making an offer for a Home

Now that you've gotten pre-approved for a mortgage and found a home thatyou like, you're ready to make an offer. But how much should you offer? Check the recent sales of comparable neighborhood properties. Look for homes of roughly the same age, style, square footage and bedrooms/ baths. First, check the active listings summary to see how many homes are included and how similar they are to your selected property. Your visit to the home should give you an idea of the home's condition and what repairs it may need. If you used a buyer's checklist, review it for any reasons to raise or lower your estimate of value.

Be prepared to compromise.
Approaching negotiations with a confrontational attitude is unlikely to yield positive results. According to negotiation experts, a realistic goal heading into a negotiation is to find a mutually beneficial solution in which both parties can "win". In order to achieve this goal, you may have to sacrifice something to reach agreement at some point. Be sure to identify in advance what you will and will not give up to ensure you're happy with the deal in the long term.

Backup your offer.
When offering to buy a home, you don't have to give an explanation as to how you arrived at a particular dollar amount. But you may do better in negotiations if you have some objective basis, such as examining comparable sales. The best way to show a seller you mean business is to accompany your offer with a purchase contract and a substantial "good faith" deposit. You should be prepared to walk away from terms you do not feel are acceptable. You may be reluctant to give up after all the time you've invested in the buying process, but tense negotiations can frequently benefit from a cooling-off period. Walking away or letting the other party walk away may be uncomfortable, but it is always preferable to accepting terms you can't live with.