Making an Offer There is often anxiety around making your first offer. However, it is helpful to remember that an offer is just an offer and not a commitment to buy. An agent that is truly representing your best interests will build in the appropriate contingencies allowing you to do your due diligence once you know the seller will work with your offer. Think of it like making an offer on a used car with the stipulation that you would like your mechanic to look at it first. We highly recommend not paying for an inspection or ordering association documents until you have secured that the seller is willing to work with your offer. You could end up wasting a ton of time and money while completely exposing your interest level in the property therefore giving up leverage on price. The first step in making an offer is to establish the value range of the home. You
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and your agent should look at comparable sales in the area and make the appropriate price adjustments to the comps for attributes that are different from the subject property. It is also a good idea to use a couple automated evaluations for additional data points. Your agent should have access to these tools. The next step is to plan your negotiation strategy. It is important to understand the current local market conditions and potential interest in the home. This is where you decide the price range that would be an acceptable result for you, thus drawing your line in the sand. You should not have an issue sharing this with your agent if trust has been established. This will allow your agent to structure the offer in a way that gives you the best opportunity to get the home at or below the acceptable price with the best possible terms. Every situation is unique. There is no single strategy that works in every situation. Open and honest
THE SMART HOME BUYER
