Buying your First Home depends on negotiating a satisfactory Purchase & Sales Contract with the seller, not just making an offer.
How to Determine Your Initial Offer
Unless you have a Buyer’s Agent, which we strongly recommend, keep in mind that the Dual Agent gets paid by the seller. Make a point of asking this agent to keep your discussions and information confidential.
If you have a Buyer’s Agent, listen to your REALTOR’s advice, but follow your own instincts on deciding a fair price. Calculating your offer should involve several factors
♦ How much of a mortgage have you been Pre-Approved for
♦ What similar homes sell for in the area
♦ The home’s condition,
♦ How long it’s been on the market,
♦ Financing terms
♦ The seller’s situation.
By the time you’re ready to make an offer, you should have a good idea of what the home is worth and what you can afford. And, be prepared for give-and-take negotiation, which is very common when buying a home. The buyer and seller may often go back and forth several times before they can agree on a price.