Discuss the price with your agent:
Once you think you have found a home you can afford, you will need to confirm if the home is priced right.
Obtain a market analysis:
Typically, a good agent will preform a market analysis of comparable, recently sold homes in the neighborhood, to determine if the asking price is fair. Homes similar in size and location will be the foundation for a price range. Adjustments will be made for more subjective items such as condition, views and current market trends to come up an offer price that is in your best interest.
Understand seller confidence:
A good agent will be able to glean some information such as “days on market” and seller motivation, and assess seller confidence. Armed with some understanding of seller confidence, priorities and contingencies, your agent will be able to help you adjust the offer price to place you in the best position to win the offer at a the most competitive price.
Talk through contingencies:
Your agent will be able to structure terms for the offer that protect you should you be unable to meet certain terms of the contract such as appraising, qualifying for a loan and many other milestones. Contingencies vary from area to area as well buyer or seller markets and you agent understand these subtle differences.
Your REALTOR® will help you create a timeline of key dates to be documented in the offer. These include inspection, loan approval, closing date and many more.
Sweeten or sour the offer:
In a Sellers’ market you may need to make an above list price offer with minimum contingencies. Conversely a Buyers’ market may allow you to make a bellow list offer with multiple repair concessions.
Your REALTOR® will put it all together and submit the offer electronically to the Sellers’ agent.