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Making An Offer On A House: Understanding the Process

Makimaking an offer on a houseng an offer on a house may seem like a daunting task - if it's your dream home, you don't want to lose it with an offer that's too low. At the same time, you don't want to pay more than the property is worth. You want to end up the lucky buyer that got the most home for your buck!

Once you've made a decision on the home you want to buy, your real estate agent will draft a purchase and sale contract in your name that he/she submits to the seller's agent. The seller will then respond in one of three ways: accept the offer, counter with a higher asking price or reject it.

There are essentially 3 ways to make an offer: below price, highest and best and full price.

Below price offers are common in a buyers market where there is more inventory than buyers, so prospective buyers can try to skim 10% off the asking price of the property. Buyers can also sweeten the deal with a large deposit, guaranteed quick closing or accepting the present state of the home.

When sellers or their agents grow restless during negotiations they will often ask for your highest and best offer. Don't go out of your way to try and figure out how to make a much higher offer work with your budget unless you are 100% sure you want the property.

making an offer on a houseIf the home is absolutely the one for you and is worth the price, offer to pay the full asking price. Do you really want to lose the home of your dreams for $1000? Another buyer may show up happy to pay the full price.

Your real estate agent will guide you through making an offer and will recommend what to offer, what to ask for, etc. So do not fear, you don't need to go it alone!

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