How do I make an offer on a home?

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Once you’ve been approved for a loan and found a home that’s right for you (with a reasonable asking price), you’re ready to make an offer. Before you make an offer, you’ll want to determine the fair market value of the home. Your real estate agent can be very helpful in this regard. Performing a Comparable Market Analysis (CMA or “comps”) will show the estimated values and actual sales prices of properties similar to one you are looking to purchase. You may want to consider negotiating both the purchase price of the home and the closing costs of the loan. When it comes to real estate matters, most costs are negotiable. The key to negotiation is being informed: know the market conditions and know the seller’s expectations and reason for selling. If the seller is in no rush to sell and has unreasonable expectations that deviate from market conditions, you should probably just keep looking. You need to be realistic, too. An unreasonably low offer may offend the seller and bring an abrupt end to negotiations or cause the seller to become less accommodating. Whatever you offer, expect a counter-offer. Once you and the seller agree on a sale price and allocate closing costs, you can settle on a closing date.