How to Make on Offer on a House

By eHow Home & Garden Editor

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Once you've decided to purchase a house, you have a long road ahead. Either with the aid of a professional real estate agent or on your own, you'll have to locate and evaluate numerous properties before you initiate the purchase process by making an offer on a house.

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Instructions

Difficulty: Moderate

Do Your Research Into Home Prices

Step1

Watch the local newspapers or online real estate listings to get a good idea of the home listings in your area. Pay special attention to how long a house may have been listed and whether or not the list price has fluctuated during that period.

Step2

Pay attention to broader trends in the real estate market. Certain economic issues, even those on a national level, can make a big difference in local real estate markets. While a house might be in ideal shape and in a great location, a "buyer's market" might give you an advantage when it comes to making an offer on a house.

Step3

Ask your real estate agent to get you a Comparable Market Analysis (CMA) evaluation. These reports will provide a detailed look at which houses have sold recently. This information can help you form a clear idea of how much you should offer when attempting to purchase a house.

Step4

Do the math. Compute how much you'll be willing to spend per month on a mortgage. Remember to factor in yearly property taxes, insurance and other expenses when drawing up your budget. Before you can make an offer on a house, you'll need to know how much is too much to spend.

Make an Offer and Complete the Negotiation Process

Step1

Make an initial offer on a house. While most people enter their offers through a real estate agent, it's possible to negotiate offers directly with the property owner.

Step2

Expect a counter offer. The process of purchasing a home is similar to purchasing a car. Buyers and sellers are expected to go back and forth several times with offers and counter offers.

Step3

Stay in constant communication with your real estate agent. Depending on the specific needs of the buyer and seller, it's possible for the negotiation process to go very quickly. Don't allow another prospective buyer to swoop in and purchase the property.

Tips & Warnings

Check for any individual state laws that regulate how offers can be made on a house. Some states dictate that any purchase offer be quite detailed, including all kinds of specifications and qualifications.