This step-by-step series will take you through the entire home-buying process — from finding a buyer’s agent to settlement day, and all the details in between. Every first-time buyer will find this information-packed series easy to follow and understand. Make sure to tune in for the next few weeks!

You’ve done it … you found the home you want to buy! Now you’re ready to make an offer and tackle some of the next steps that will make you a homeowner.

As you and your agent prepare to negotiate keep in mind your needs and wants and your maximum offer for this house based on your criteria. Remember we need to keep within the budget you set.

Your offer is not just about price and down payment. There are also the conditions or terms that you will set with your offer.

Price – this depends on the market, your budget, and the house location and condition.

• Your agent should work with you to review comparable properties that have sold recently, sometimes you can go back as far as 6 months, but you want to stick with the most current sold properties, it may be better to look at a comparable neighborhood for additional comps rather than looking at older comparable properties in the house’s neighborhood. The market will drive whether you can look at older comparable or need more current ones.
• Don’t just accept the asking price, use the comparable properties that have sold recently, compare to current active listings and pending listings to get an idea if the house is priced above market or below.
• Compare the features of the house you are offering on to the features of those comparable houses. An additional bathroom or bedroom or central air vs none will increase or decrease the value of a home.
• Consider all the information available. Has the house been sitting on the market for a while? Is it a buyers or sellers’ market in that neighborhood. Is there something about the house that makes it less attractive to other buyers? Will this be a multiple offer situation? If so you need to set your price accordingly
• Decide your top number – This is the number where you will walk away without regrets. In other words if the house sells for $1.00 over your top number you will be OK with it.

Conditions: you need to set the terms or conditions of your offer

• Home inspections – Are you going to do inspections and which ones? You should minimally do a home inspection and if applicable a well and septic test. I never recommend that clients waive the inspection.  At least do one for informational purposes, in other words you are not expecting the seller to address anything. But you will know what you are getting into and if there is anything major that comes up you can still walk away or ask them to address before you walk away. In Westchester and surrounding counties inspections are done before the contracts are signed.
• Appraisal contingency – This contingency usually means the appraisal must come back at the contract price or higher. If not, you would have the opportunity to negotiate further with the seller or get out of the contract.
• Home sale contingency – This would make your purchase contingent on selling your current home. Depending on whether it is a buyers or sellers’ market this contingency may not be accepted by a seller.
• Closing date – you want to close quickly but be flexible if the seller will need more time.
• Down payment – If your down payment is 5% or less you will have to put the whole amount down at contract signing. If you are putting 10% or more down, you can probably put down 5% at contract signing and the remainder at closing.
• Seller concessions you wish – in a sellers’ market you most likely won’t get seller concessions such as money towards closing costs or towards buying down your interest rate. These concessions are usually more prevalent in a buyers’ market.
• If there was anything specific excluded – say a swing set or hot tub in the yard that you particularly want that could be made a condition. They may say no but doesn’t hurt to ask.

The offer – your offer complete with your conditions

• If you make an offer under the asking price, make sure you back it up. It helps to share how you came up with the price, share the comparable properties you used to come to your price decision, so they don’t think you are just lowballing them.
• Keep your offer and the conditions simple. The more straightforward your offer the easier it is for the seller to accept.  This is where first time buyers have an advantage as they do not have another property to sell.
• On the other hand, be flexible when considering any stipulations by the seller. If you can accommodate the seller, do so if possible. For example, they may want to rent back from you for a month until they can move out of the home or want more time until closing.
• Offer to pay all or most of the closing costs if possible. This could increase your chances of being chosen and set you apart from other potential buyers.  This is a tactic buyers can use in a strong sellers’ market.

Show you are a serious buyer

• Pre-approval letter and down payment deposit. Always include your pre-approval letter even if the seller is not requiring it with your offer. Consider giving them permission to speak to your lender if they have questions.
• Make your BEST offer based on that home’s situation. Offers should vary on the circumstances:
• If the home just came on the market and already has multiple offers, you will need to go in with your strongest offer, your best price, and fewer contingencies. Give it your best shot right out of the gate in these circumstances as the seller will choose the best offer first to negotiate with. The best offer is not necessarily the highest offer, sometimes the terms or conditions play a factor as well as down payment amount.
• If the home has been on the market for a time, you’ll need to write a completely different offer — one that is more favorable to you versus the seller.  Always back up such offers with comparable properties to support a lower price.

With these tips in mind, you should be able to close the deal on our new home. Just a few more steps ahead and you’re almost there!

Don’t let this step scare you!  Negotiating for a home can seem overwhelming, but I have a very educational, step-by-step way of making sure you have the knowledge and confidence to make the best decisions for you.  I’d love to share the way I do that and the steps I take to help you get the right home for the price.  Email me at your convenience and I’d be happy to share my secrets with you! 😉

Next up in my 13-part Beginner Guide to Buying a Home series. You’ll learn how to handle the home inspection in How to navigate a Home Inspection. So, Stay tuned!