Making an Offer to purchase your new home

After you find your Dream Home, it is time to prepare your offer.  An offer should always be in writing and be very specific.  For your own protection, consult with a Real Estate Attorney in your area.

When formulating your offer, take the time to do a Comparable Market Analysis (CMA) of homes in the area that have sold within the past 6 - 12 months.  Compare the age, location, size, style and amenities of the homes.  If the information is available, take a look at asking prices versus selling prices and also note the length of time an individual property has been on the market.  Always leave room to negotiate in your offer. 

An offer should include:

1.  The price you are willing to pay for the home

2.  A deposit (earnest money, usually in the form of a check)

3.  Contingencies (can include but are not limited to):
          Mortgage contingency for your financing
          Home Inspection contingency
          Property sale contingency (of your current home)

If the seller accepts your offer, a valid contract is formed.  Many times, however, the seller will respond with a counteroffer.  Then it is up to you, the buyer, to either accept the seller's counteroffer or continue the process by presenting the seller with another counteroffer.


Helpful Information can be found at:

http://homebuying.about.com/od/sellingahouse/qt/062107CMA.htm
 
http://www.cmafacts.com/