How do I determine the initial offer?
Unless you have a buyer’s agent, remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential. Listen to your real estate agent’s advice, but follow your own instincts on deciding a fair price.
Calculating your offer should involve several factors:
- What 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 until they can agree on a price.