Making the right Offer

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Once you’ve found the right home, you should make your offer based on a comparative market analysis (CMA) done by your agent. The CMA is a calculation of a home’s market value based on comparable recent sales in the same area.

Using the CMA as your baseline, your agent should help you determine a fair offer price and help you decide if you should leave some room for negotiation — this depends on the state of your real estate market.

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Above and beyond the CMA, here are some other things to take into consideration when making an offer:

Disclosures: Disclosures are known problems related to structural issues, unpermitted work, natural hazards and flood risks. Most states require sellers to provide disclosure documents, so make sure your agent requests them.

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Closing date: When you’re buying a home with a mortgage, it will take 30-45 days after the contract is executed to close on the home. When you submit an offer, you can request a later closing date to fit your moving timeline, but the seller may push back on this request.

Contingencies: A contingency is an agreement between the seller and the buyer or the lender and the buyer regarding conditions that need to occur for the sale to move forward. Some contingencies are necessary, like the appraisal contingency your lender will require to ensure they’re not overpaying on your loan. An inspection contingency is up to you, but it’s highly recommended.

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Earnest money: An earnest money deposit is a sum of money you’re willing to put down when you make your offer to show that you’re serious about buying the home. If you close on the home, the earnest money simply becomes part of your down payment. If you back out of the purchase (outside of a contingency), you’ll lose the deposit.

It’s important to note that not every offer works out. It can be disappointing, but try not to feel discouraged if you don’t get the first home you put an offer on. In fact, 42% of buyers who submitted an offer ultimately made multiple offers before successfully closing on a home, according to the Zillow Group Report.

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