• The offer includes: the price, legal description of the property, terms (all cash or subject to your obtaining a mortgage for a given amount), the amount of earnest money deposit accompanying the offer, provisions about who will pay for title insurance, survey, termite inspections and the like, type of deed to be given, length of time the offer is valid, proposed closing date, and the stipulation that your obligation to buy is contingent upon the successful negotiation of the contract, and other contingencies that vary case by case.



• Calculating the amount of your offer should involve several factors:
  • What homes sell for in the area
  • The home's condition
  • How long it is been on the market
  • Financing Terms
  • The Seller's situation

Check Comparable Sales

Find out what other homes in the neighborhood have sold for. At Metro Realty Group, we are dedicated to providing you with outstanding service. Therefore, we provide you a market analysis for your target property at your request. This analysis includes detailed information about homes that are similar in size, location, and condition to the one that you wish to purchase. When analyzing this data, keep in mind the following considerations:

• Is the listing price in line with the recent market, right on the average or just a little above or below?
• Or is the listing price much higher or much lower than that of comparable homes? If the listing price is higher, are there any amenities or features that might justify the difference or has the seller simply overpriced his/her home (perhaps attempting to recoup the cost of home improvemnts or renovations)?

Check the Home's Condition

Attend open houses, so that you can compare the condition of other homes to the one that you wish to purchase. Make an objective survey of each home based on the following:

• The Structure-- Check the basement's foundation for cracks or water marks; check for mildew odors; Check the floors (level?); Check the roof (does it sag?)
• Water Damage-- Look for unevenly painted ceiling or wall; signs of re-plastering or re-tiling in just one area of a room.
• Water Pressure-- Flush toilet and turn on both hot and cold water faucets at the same time.
• Plumbing-- Inquire about what types of pipes are installed and their age.
• Wiring-- Do lights flicker? Check for electrical outlets (generally, 2 in each room).
• Energy Efficiency-- Ask to check last year's heating and cooling bill. Determine if proper insulation is in place.
• Routine House Cleaning-- Check paint, furnace filters, gutters, caulking in bathrooms, landscaping, floors, walls, etc.
• Home Features-- Check for any unusual features that may increase or decrease the appeal of the home.

Check How Long Its Been On the Market

If the house has been on the market for only a short period of time, the sellers may not be ready to lower the price. However, if it has been on the market for a long time, the seller may opt to accept offers lower than the sales price. Also, consider whether the housing market is hot or cold. Note that in a seller's market, where houses are selling quickly, the seller may be unwilling to lower the price much, if at all. Conversely, in a buyer's market where many homes are for sale and are staying on the market for a long time, sellers are often more willing to go lower in price.

Financing Terms

Once you are pre-approved by our lenders at 1st Sierra Mortgage, you will have higher buying power and will be more appealing to the seller. The important aspects that you decided when applying for the mortgage were: what kind of loan you wanted (Conventional, Fixed, etc.), what you wanted the term to be (15 year, 30 year, etc.), and your loan amount. From these figures, you can decide on how much to offer on the home. Make sure that your offer is in line with your financing capability.

Know the Seller's Motivation

Its important to know why the Sellers have decided to sell their home. If they are relocating out of the area in a hurry due to a career change, then you know that they will be in a rush to sell and close the deal. Also, if they are planning to purchase a larger home, you know they will want to sell their current home fairly quickly because they will need the equity from this sale for the down payment on their new home. However, if they are selling because they are moving to a retirement residence, you should be aware that they will most likely take their time in their selling their perhaps beloved home.

Important Note: If you really want the house, try to hide your eagerness from the Realtor and the seller. Keep your emotions in check and conduct business in a professional manner.

Finally, the seller will either accept your offer, reject it, or make a counter offer. This process will occur until you and the seller agree to the purchase price. Once both of you have agreed, you can get a home inspection conducted to ensure the home's structual integrity and condition.