So you’ve finally found your dream home! The location, neighborhood and floor plan are perfect and you can envision yourself living a happy life for many years. Congratulations! But what do you do next? Making an offer on a home can be an intimidating process for a first-time homebuyer, and while your Agent should walk you through the process, it’s nice to have a heads up before it’s time to buy.

So what comes first? You know you want the house, but everything has a price. Your Agent should pull “comps” or comparable properties to show you, to see exactly what the fair market value may be for the home. Comps are typically a similar style home that has sold in the past 6 months that can give you an idea of how much your home is worth. Comps should not be confused with a CMA, or Comparable Market Analysis, since those can take into account the average list price in the area.

Once you know how much the property is worth, it’s time to decide how much you’re willing to pay for it. While many times a homeowner will not be willing to negotiate far below fair market value, there are a few reasons they’d be willing to accept a low offer. If a home has been on the market for over a year, they may entertain a low offer, or when a house has been sitting vacant for more than a few months. There a hundreds of personal reasons why a homeowner could be looking to sell quickly, such as divorce, a death in the family, or being relocated for work. If your goal is to get a deal at all costs, know that you may be making offers on multiple homes, and that it’s very easy to offend a less-than-motivated seller.

There are also times when you may need to offer above the asking price, like when you have a multiple offer situation. Multiple offer situations can be frustrating because the seller’s Agent does not have to disclose any information about your competitors’ offers. Agents refer to the offer as your “highest and best,” meaning that not only the price can sway a seller, but the terms of the contract can as well. A contract with fewer contingencies and a greater deposit are much more attractive to a seller and could help you win your house. To check out our homes for sale in Denver CO, visit us at PorchLight.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com

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