The Offer Price


When you prepare an offer to purchase a home, you already know the seller's asking price, but what price are you going to offer and how do you come up with that figure?

Determining your offer price is not difficult. Get comparable sales prices of homes in the area or similar area to come up with a range the house could sell for. Make adjustments for the condition of the home such as; home improvements, pool, large lot, etc. Also, if you understand the seller's situation, it can help you determine a fair price. If they are motivated they might be willing to take less than the asking price, otherwise, they might be holding out for the asking price.

Before going into negotiations, you need to ask yourself how much you want the home and how much you are willing to pay based on the comps. It is not a good idea to get emotional about the house before you start negotiating, although sometimes that can be difficult. If deep in your heart you have to have this home, be careful about playing games in the negotiations, someone else could come in and out bid you. If you are not emotional, then you have more room to negotiate and you will not be devastated if you are out bid.

Other factors such as using VA or FHA financing can affect your offer. If you are obtaining a VA or FHA loan, you must disclose that in your offer because government loans require sellers to pay additional costs and require the house be in a certain condition. If the seller is unwilling to pay the extra cost or make required repairs, the mortgage company will not fund the loan. Sellers need to know up front if you are financing through VA or FHA so they can decide if they want to accept your offer and pay the extra cost.

Based on these conditions, I can help you strategize the negotiations to give you the best chance of getting the home you really want.

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