Learning Center |
Making an Offer | How Much Should I Offer?
How Much Should I Offer?
Generally, I will help you with this. However, there are several things to consider as you develop your purchase offer:
- Is the asking price in line with prices of similar homes in the area? I will conduct research, called a "Competitive Market Analysis" or CMA, on comparable properties, to help you come up with an educated opinion on the worth of the property.
- Is the home in good condition – or will you have to spend a substantial amount of time and money making it the way you want it?
- How long has the home been on the market? If it’s been for sale for a while, the seller may be more eager to accept a lower offer.
- How much mortgage will be required? Make sure you really can afford an offer that you plan to make.
- How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted.
Common points of negotiation The buyer and seller may negotiate many of the associated costs of the transaction. Some common items are: price, financing, closing costs, repairs that need to be made, appliances and fixtures, landscaping, painting and occupancy time frame.
Counteroffers Offers are occasionally rejected outright, but it is common for a seller to counter an offer with terms acceptable to them. But don’t let this stop you. Now you begin negotiating. I will help you. There are many options to explore:
- Maybe you offer more money, but ask the seller to cover some or all of your closing costs or to make repairs that wouldn’t normally be expected.
- Or, you provide the seller with more time to move in exchange for a price break, if you know extra time is what they need.
- Just remember – don’t get so caught up in negotiations that you lose sight of what you want and what you can afford!
At what point are negotiations binding? You will have a binding contract if the seller, upon receiving your written offer, signs an acceptance just as it stands, unconditionally. The offer becomes a firm contract as soon as the signed, unchanged offer is delivered to you or me, your agent. If the offer is rejected, that’s that and the seller cannot change their mind and hold you to it.