Making Your Offer

This is when you put pen to paper and specify how much you're willing to pay for the home, and under what conditions you will buy (including the repairs requested, move-in date, and so on).

A written offer usually includes the following:

• Complete legal description of the property
• Down payment and financing details
• Price you are offering
• Amount of earnest money
• Proposed move-in date and closing date

Calculate the reasonable price of the property based on other properties in the same area (location is the key factor in determining value), the state of the property market and the amount of work that needs to be done. Don't let anyone know that you are willing to go higher, and try to give the impression that your offer is a high as you can stretch to.

If the market is slow, and your offer is rejected, it may be worth waiting a week or two before making a higher offer. Be wary - agents sometimes invent rival buyers and bids - if this is the case, ask them for written evidence.

However, if you've found your dream home, make an offer straight away and increase it until it's accepted. If you really want it and there has been a lot of interest AND it's reasonably priced, you should probably consider making an offer at the asking price.