Making An Offer

If you are interested in a home and would like to buy it, you will present an "Offer" to the seller outlining what you are willing to pay for it and any other contingencies that need to be met including timeframe for accepting the Offer, closing date, home inspection, material requests such as keeping appliances with the home, etc. Offer is a very polite term for Sales Contract – it is a legally binding document. If the seller agrees to your terms, be prepared to move forward on the home purchase.

Your real estate agent is your advocate in the sales process and will help you develop the best Offer to present to a seller.

In determining the price you will offer to pay for the home, your real estate agent may look at a Comparative Market Analysis (CMA) which looks at other homes sold that are of the same size (including bedrooms and bathrooms) and located in the same neighborhood. Other considerations include the condition of the home compared to others and any additional amenities.

Market factors will also determine the Offer price. In a sellers' market, you may be competing against other bidders so you will likely pay the list price or more for the home. If home sales are slower or the seller is motivated – meaning they are anxious to sell their home – you may be able to negotiate a lower price for the home.

Once you have determined what you will offer the seller for the home, your real estate agent will help write up the Offer in a formal Sales Contract, which they will give to the seller's agent along with "Earnest Money" in the form of a check from you. Earnest money is a small token that shows you are interested in the home. The amount is generally large enough to show your seriousness but small enough so that you suffer little financial hardship.