Put all the numbers on the table. Determine the amount you are pre-approved for and then use a. to figure out what your monthly payment would be. See how it all adds up and determine a reasonable budget that fits the lifestyle you want to have while living in that house. You submit an offer of $250,000 with an escalation clause that says you’ll pay $1,000 more than the highest offer, up to a maximum offer price of $260,000. Or perhaps an older couple is moving to Dallas, TX to retire, but they have plenty of time to sell their home and therefore, want the best offer. Should your offer start above, below, or at list price? “Comps,” short for comparables, are recently sold homes that are similar to the house you are offering to buy. A seller’s market has eager buyers competing for houses as soon as they are listed for sale. Having this information is especially important once negotiations begin. All rights reserved. You’ll want to compare the condition of the house you like to what’s known about the comps. So unless you use a buyers’ agent to help you negotiate, you are really going to ha… Your agent will interpret the information and write up an offer that works for you and the current housing market. A seller’s market can be tough for buyers and cost you more, especially if you allow emotions – instead of logic – to drive your offer decision. Fortunately, your real estate agent has access to a variety of databases, such as the multiple listing service (MLS) that provides more detail about comps. You, of course, want to come in with a competitive offer, but you also don’t want to overpay. Figuring out how much to offer on a house can be one of the most challenging parts of the homebuying process. So, you’ve spent weeks house hunting and you’ve finally found the perfect home for you and your family. Check with your real estate agent to see if they have any details about the seller’s intent. An. When it makes sense to offer more than the listing price on a house. But how much should your initial offer be? See if you can discover the seller’s intentions, Understanding the seller’s intentions for selling the home can be an ace in your pocket. And in most cases you are right – in reality, the agent doesn’t get paid unless a sale is made, so obviously, he is keen to sell you the house.But most agents prefer an easy negotiation, knowing that sellers get offended when they receive low offers on their homes. It is important to get the opening offer right, as this will play a big part in determining the amount you eventually pay. Additionally, your lender may require an appraisal contingency to make sure the house appraises for the value of your offer. Her dream home would be a charming Tudor-style house with large windows to let in lots of natural light. Your realtor can help you determine if your offer is reasonable. And to be clear, just because the lender agrees to lend you a specific amount does not mean you should offer the full asking price on a house. You are in a buyer’s market and have many homes to choose from. It makes sense to offer more than the list price if you absolutely love the house and want it, no matter what. Be sure to also account for private mortgage insurance (PMI) if it applies, in addition to any other expenses. Based on your budget, you’ll need some wiggle room. Put all the numbers on the table. But how much should your initial offer be? Fortunately, your real estate agent has access to a variety of databases, such as the multiple listing service (MLS) that provides more detail about comps.