How to Make an Offer

If you choose to work without using the services of a professional real estate broker (like me) then you may want to consider the following before you make an offer. (Find out the benefits of using a professional real estate broker.)

Of course the final decision is yours on how you handle your offer, the following are just suggestions.

Once you have found the property you want, it is time to make an offer.

You have to understand that there is only a limited amount of information we can provide on this site to help you make your offer. There have been dozens of books written about negotiating. We just present some of the highlights of successful negotiating for your success.

There are several rules that you should consider when making the offer.

The first rule in negotiating is to be willing to walk away because the guy who is willing to walk away is the one who has the better advantage. Letting someone know that you are willing to walk has to be done in a very soft-sell way. If you are too abrupt, you may cause the seller to dislike you and if they do they will not come off on the price.

Getting someone to accept an offer lower than their asking price is the same as selling them something. You are selling the property owner on the idea of selling their property for less than they are asking. The most important skill a salesperson can utilize is the art of active listening. Most often, the seller doesn't care about you or what you are doing. Most people are more interested in their own situation than yours. So getting to know the people you are talking to will improve your chances of getting your offer accepted.

When you are making an offer you have to find out what the motivation is for selling. If a property is on the market for a long time, the buyer may not be really motivated. The best way to find out what their motivation is to ask them what they plan on doing after the sale is made.

If you are making an offer considerably lower than the asking price, then you should be prepared to demonstrate that the value of the house is truly reflected in your offer. The best way to do this is to present the sales history in the area for similar homes for the past three months. In a volatile market, sales from a year ago will not represent the current market.

Just to beat someone down on a price may seem like a good idea but the truth is that there are some really great deals you can find on the courthouse steps in foreclosures.

A word of caution: If you are negotiating the sale and working with a broker who represents the seller, they you really should consider having a broker represent you. The broker who represents the seller is going to be hard pressed to do a good job representing you especially since he or she already has a relationship with the seller. Another consideration is that the broker who represents the seller is probably a professional with years of negotiating experience and the chances of you being able to get the upper hand will be small and you really need to find the services of a good broker to represent your interests.