Determining Your Offer When Buying A Home

You've found your dream home, and now you want to make it yours! You know what the seller wants for the house, and perhaps you already know the loan amount for which you qualify, but how do you determine what's a wise opening offer? Your real estate agent will help you to do this by taking a number of factors into consideration.

Compare Sales Figures

When deciding on your offer, your first step should be to examine the recent selling figures—not list prices, but actual sales prices--of similar properties in the area. This is known as "comparable sales" and will help you to determine a price range for your offer. Specifically, you should compare the home you want to buy to others of a similar lot size, square footage and design, with the same number of bedrooms, bathrooms and garages. By the time you are ready to make an offer to buy and apply for a home loan, you should have a good idea of what the home is worth, and how much you can afford to spend.

Check The Condition Of The Home

Next, you need to consider the condition of the house. Is it ready for you to move into immediately, or is it in need of extensive maintenance work? You may have to pay for repairs and these factors will affect your offer. Also, consider any unique features, such as the view, or home improvements that have been made to the property, as these may add to or detract from the value of the home.

How Long Has The House Been On The Market?

Find out how long the house has been on the market for sale. The longer the home has been up for sale, the more likely it is to be overpriced and the more willing the sellers may be to accept a lower offer for the property.

Once you have decided on your offer, you will need to present it in writing along with a good faith deposit to the seller. This deposit will prove that you are serious about purchasing the home – and getting the home loan. This check will not be cashed unless the seller accepts your offer.

One of three things can happen once you have made your offer known to the seller:

• Your offer can be accepted
• Your offer can be rejected
• Your offer can be countered with another offer from the seller

Only a rejection of your offer, or a counteroffer by the seller, will release you from honoring your original offer. So whatever you do, don't make the mistake of making a written offer without the advice of your real estate agent and/or attorney.

Make Your Offer With Confidence - Get Pre-Qualified!

Find out how much you can qualify for. Call Countrywide, call toll-free, at 1-800-909-8217 and get a FREE loan consultation. If you apply for a purchase loan, you could receive a Pre-Qualification letter, which can put you in a stronger negotiating position with a seller. Make your offer with confidence, and finance your next home loan purchase with Countrywide.