Through this phase, you’ll work closely with your real estate agent. They’ll help determine a fair offer price while making sure you stay within range of what you can afford. They’ll also handle all contract negotiations with the seller’s agent.
Determining the Price
You’ve found the perfect home, have your pre-approval letter in hand and are ready to make an offer. Now what? Your real estate agent will be by your side, helping you determine a fair offer price based on their experience and following key considerations:
- Recent sales prices of similar homes in the same neighborhood
- The condition of the house
- What you are willing to pay and can comfortably afford
Submitting the Offer
Once you've determined your price, your agent will draw up the offer, or purchase agreement, to submit to the seller's real estate agent. The offer will include the purchase price and terms and conditions of the purchase, including:
- Target closing date
- Provisions for certain fees
- A deadline for them to accept or counter your offer (typically one to two days)
- Any contingencies (e.g appraisal and inspection contingencies)
Negotiating the Offer
Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller's agent will submit a counteroffer to your agent, detailing the desired changes. For the counter offer, you have the option to accept, reject or counter it again. Your agent will play a large role during this part of the process, communicating all changes with the seller's agent.
Finalizing the Contract
The contract is considered final when both parties sign the written offer. Your next step is closing, the last step before you get the keys to your new home!
Tools & Resources
3 Strategies for Winning the Bidding War
Bidding wars are not uncommon. Find out how you can win them.
Video: Closing Process
Your closing agent will work with you during the final stage of the homebuying