Submitting an Offer on a Home: How Much Should You Offer?

By Fran Campbell - September 07, 2018

Even if you are not a first time home buyer, determining how much you should offer on the real estate you are interested in can be tricky. The average person isn't purchasing and making real estate deals every day and most of us are accustomed to buying products with a set price that is not negotiable. When it comes to making an offer on real estate at the Lake of the Ozarks there is typically a negotiable price, although this will depend on many circumstances that are ultimately up to the seller. Consider these things when you are ready to make an offer on your dream home at the Lake of the Ozarks.

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.

One of the most important parts of making a real estate transaction is to have an experienced Real Estate Agent at the Lake of the Ozarks by your side. Your Real Estate Agent can help you negotiate and offer insights for making an offer that will work for both the buyer and the seller. Keep in mind that there are a lot of factors to take into consideration when you are submitting an offer on a home. Contact Fran Campbell Team and we will help you through the process and you will be moving into your dream home in no time!

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