Jeff’s Carlsbad Blog for First Time Home Buyers


I’m Ready to Make an Offer – Now What??

Posted in Financial,House Hunting by Jeff Dowler on November 30, 2006

forsale-and-sold-sign.gifCongratulations! You have spent lots of time looking and thinking, and now you are ready for that BIG STEP – making the offer! It’s kinda scary…but if you have done your homework, and followed my suggestions along the way, you are in great shape.

Relax! Making an offer causes anxiety in most people – even those who have done it before. By now you will have gotten pre-approved (if you haven’t DON’T  PROCEED until you do), and hopefully prepared a budget so you know what you can really afford (considering the loan and associated fees, PLUS your lifestyle).

Assuming your agent is acting as a Buyer Agent, you now need to review the comparable properties to see what they have sold for vis-a-vis the house or condo you are interested in. Think about the similarities in location, size, amenities, square footage. Is the property you like reasonably priced as compared to these past sales, especially those that sold very recently. Is it high?

Consider what you are willing to pay for the property (the max). Don’t start there, unless the market is such that it makes sense to do so – your agent can guide you here, as in some markets a full price offer might be appropriate, especially if the listing is new – but use this as your end point. Now, talk about where properties are typically selling for in the area (e.g., 100% of asking price, 95% of asking). This will give you a guideline of where you might start – again, talk with your agent.

The goal is to make an initial offer that the seller will, ideally, accept, but one that will at least encourage a counter offer so you have a chance to negotiate. If you bid too low the seller might tell you to “take a hike.” Once the seller is annoyed you may have hurt your chances to get into the game at all.  Keep in mind your objective, which is to get the home you want at the right price, and don’t let small details or differences between you and the seller derail you from looking a the overall picture. Good luck. And if I can help in any way, please don’t be shy about asking!

Advertisements

3 Responses to 'I’m Ready to Make an Offer – Now What??'

Subscribe to comments with RSS or TrackBack to 'I’m Ready to Make an Offer – Now What??'.


  1. […] Make an offer – Now that you found the property you wish to purchase, you will need to make a written offer (a verbal offer is meaningless). This is done on the required state form, and you will also need to include a deposit. The offer will outline terms and conditions as well as your contingencies (commonly, buyers make offers contingent upon the mortgage and home inspection). Your REALTOR will assist you with the required paperwork and will present the offer. […]


  2. […] have now found the home you love and want to buy, so what next? All states have some form for you to make a written offer (legally a verbal offer is meaningless – don’t do this).  you will also need to include a […]


  3. […] an offer – Now that you found the property you wish to purchase, you will need to make a written offer (a verbal offer is meaningless). This is done on the required state form, and you will also need to […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: