How to Make a Real Estate Offer

How much is too much? How much is not enough? Those are the kinds of questions we at The Mabadi Group can help you answer.

Here are a few things that should be considered when making an offer:

  • The asking price is generally just that, an “asking” price. Depending upon market conditions, it may be the starting point from which to negotiate the actual price of a home. The actual market value is determined by what a buyer is willing to pay.
  • Property location is the second most important factor. The proximity to area amenities and schools is typically a concern. In addition, street traffic, access to expressways and public transportation are considerations.
  • Property condition includes the structural and mechanical integrity, as well as the upkeep and cosmetic appeal of a property.
  • Market conditions including interest rates, competition from other properties, the economy and consumer confidence all influence the sale of a home. Each of these factors plays an important role in the ultimate purchase price. An offer to purchase must be tailored in response to market conditions.
  • Contract terms of a purchase can make or break the deal. Contingencies, closing dates and inclusion of accessories or fixtures should be handled clearly and up front in order to avoid any confusion that could affect the purchase and/or closing. Here are terms that should be specified in a contract:
    • Amount of earnest money
    • Price you are offering
    • Down payment
    • Details of financing
    • Closing date
    • Inclusions and exclusions (i.e.: washer, dryer, drapes, etc.)

The seller will either accept the offer as presented, or make a counter offer and ask you to resubmit a proposal. When all the parties involved have agreed upon the details, initialed any revisions and signed the final agreement then an offer becomes a contract.