When you prepare an offer to purchase a home, you already know the seller’s asking price. But what price are you going
to offer and how do you come up with that figure? Determining your offer price is a three-step process. First, you look at
recent sales of similar properties to arrive at a price range. Then, you analyze additional data, such as the condition of the
home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help
you settle on a price you think would be fair to pay for the home.Finally,depending on your negotiating style, you adjust
your “fair” price and decide with what you want to put in your offer.

Since you have toured the property you are interested in, you
should know how it compares to the general neighborhood.
All you have to do is put the home in one of three categories
- average, above average, or below average.

A hot market is a “seller’s market.” During a seller’s market,
properties can sell within a few days of being listed and there are often multiple offers.

A slow market is a “buyer’s market". During a buyer’s market properties may languish on the market for some time and offers may be few and far between.