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Make A Fair Offer

With strong competition, you’ll want to stand out from other interested buyers and convince the seller to accept your offer. Consider these tips to help you make a confident and informed offer while avoiding some of the most common home buying pitfalls.

1. Check your emotions

Buying a home can be both exciting and stressful. And, after a long home search, it’s easy to overlook some red flags because you have fallen in love with a home that checks the boxes on your home wish list.  Remember to let your realtor guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.

2. Run the numbers - again

A pre-approval letter is a great tool to show the seller that you are a serious buyer, but that doesn’t mean you need to bid the entire amount you qualified for. Remember, the amount you are pre-approved for is simply the maximum amount your lender is willing to loan you, not necessarily how much you should spend.  Plus, if you go all-in on your first offer, you might lose room to negotiate if the seller responds with a counter offer.

The amount you borrow for a mortgage should depend on your comfort level given your unique financial situation. Talk with your lender to get a better understanding of how to budget for sustainable homeownership.

3. Come to a fair offer price

While you want the best deal, be careful about submitting a low-ball offer. If your offer is significantly lower than the home’s list price– particularly in a competitive market–  the seller may think you are not a serious buyer.

Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.

4. Put on your negotiating hat

After submitting your offer, the seller can accept, reject or counter your offer by requesting certain changes, such as a higher price or adjusted closing date. This is where negotiations come in.

Flexibility is key as you work with your agent through the negotiation process. Adjusting the closing date or accepting a higher price (within your budget) can help strengthen your offer and increase your chances of getting the home. Your agent will communicate between you and the seller to reach an agreement.

5. Remember contingencies

It’s recommended that you include contingencies with your offer, which are conditions that must be met before the purchase is finalized, to help avoid costly surprises down the road. For example, making your purchase contingent on a  home inspection and appraisal will ensure that the value of the home matches the sales price.

Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold "as-is", which means the seller won't pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can't afford to fix.

Finalizing your offer is one of the last steps before getting the keys to your new home. The home buying journey is different for everyone, so it’s important to do your homework and with your realtor throughout the process.

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Process of Making an Offer on a Home
Making an Offer


When you’ve found a home that you’re interested in, it’s time to make an offer. As your buyer agent, we will draw up a contract with your offering price and necessary contingencies into a formal contract.


You will want to review this document carefully and make sure it states your terms exactly. If the offer is accepted by a seller, this contract will become a legally binding agreement.


In addition to an offer contract, you will need to provide an earnest deposit.


The deposit typically equals roughly 1-3% of the property purchase price. You will not be at risk of losing earnest money as long as you do not default on your contract. The amount will be credited towards the purchase price of the house at closing.


After you’ve made your offer, the seller will be able to:

  • Accept your offer
  • Reject your offer
  • Counter your offer

In most cases, a seller will not accept your initial offer outright. Typical counter offers include modifications to:

  • Purchase Price
  • Closing date
  • Possession date
  • Inclusions


When you make an offer on a house, you should be prepared for the negotiations to go back and forth several times before both parties agree to the terms. You might also have to compete with other interested buyers in certain market conditions.


When an agreement is reached on all issues, and both the seller and the buyer have signed the offer, you are both under a legally binding contract.

As a buyer, you will be in a better negotiating position if:

  • You have been pre-approved for a mortgage
  • You are not selling a house at the same time
  • You have not loaded your offer with other contingencies
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Looking For More Space?
Looking For More Space?

2020 has certainly made us aware of the home we live in.  Most families are spending much more time at home due to school closures and working from home.  Looks like some of these factors might become the new norm.  

Good time to consider a larger home.  Often we weigh this out with a renovation for additional space, but with building materials at an all-time high and interest rates at an all-time low, this problem needs careful thought on how to proceed.  If this is a question you have - call me to see if a move to a new home is your best move.  

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