Buying A Home: How Much Should You Offer?

By Fran Campbell - September 30, 2015

When you go shopping in a department or grocery store, all of the items available for purchase have a price tag listing their exact costs. You choose whether or not to buy each item based on the individual prices. Shopping for homes at the Lake of the Ozarks is completely different. Each home comes with an asking price, but that price is very negotiable. The ultimate sale price will be depend on how much the buyer is willing to offer and how much the seller is willing to accept.

The Negotiation Process

When you find the home you want to buy, your first step is to submit an offer. Among other things, your offer should include:

Suggested sale price
Any furniture or miscellaneous items you want to be included in the sale
Suggested closing date
Any repairs that must be made before the closing date
How much time the sellers have to respond to your offer

From there, the sellers will review your offer and choose whether to accept, deny, or counter. If they counter, they may revise any aspect of your offer, such as the sale price or the other items to be included in the sale. You will then have the same opportunity to accept, deny, or counter. Eventually, you will arrive at a solution that everyone is comfortable with and both parties will sign the agreed-upon contract.

How Much Should You Offer?

Counter-offering is relatively easy, because you can work off of the previous offer or counter-offer. Submitting the very first offer is a bit more challenging, though, because you have to start from scratch. How do you know how much to offer? Answering these questions will help you get started on the right track:

How long has the home been on the market?
Are there other buyers interested in the home?
Is the home in good condition?
Are there any obvious repairs that need to be made?

Looking at the big picture will help you determine how much to offer, as there are a lot of different factors that can influence what offer the sellers will accept. If the home has been on the market for several months without generating very much activity, for example, the seller may be more likely to accept less than the asking price.

A Few Things To Keep In Mind

Your Lake of the Ozarks real estate agent will be able to help you strategize the best offer, but here are a few general guidelines to keep in mind:

Be cautious about low-balling. Of course you want to save as much money as you can on your home purchase, but if you submit an offer that's much lower than the asking price, you risk insulting the sellers.
Don't offer more than you can afford. Submitting a generous offer is a great way to ensure that it will be accepted, but make sure you don't offer more than you have been preapproved for.
Be friendly. In some cases, you may have the opportunity to meet the sellers. If your paths do cross, you'll want to do everything you can to be friendly and likable. Your transaction is not just financial; sellers typically have a lot of emotional attachment to their homes, and it can be hard to see them go. If you demonstrate your love for the house and your excitement to start your new life there, the sellers will likely feel better about passing the home on to you and will probably be more willing to accept your offer.

Fran Campbell Team Is Here To Help!

Obviously, there are a lot of different factors when deciding how much to offer on your new home at the Lake of the Ozarks. Don't be afraid to ask for help and guidance from an experienced Lake of the Ozarks REALTOR®! We would be happy to assist you throughout the process.

Contact the Fran Campbell Team to schedule a showing!