Once you have found a home you love, it’s time to submit an offer. It’s important to prepare an offer that presents the seller with your best terms. Your agent can help you run comps, determine a fair market value, prepare the offer, and negotiate the best deal for you.

What is a Comp? A comp, or comparable, is another property that has recently sold with similar criteria to your subject property. Looking at other similar properties that have sold will give you a good idea of what price to offer. The only true comp is a comp that has already sold and closed. Active or pending comps are nothing more than a seller asking for a price.

What is a Fair Price? A fair price is the price a home would fetch in the marketplace. If buyers are only willing to pay $150,000 for a home, then the home is only worth that price. If two people are interested in a property and one of them is willing to pay $160,000 for the same home, then the property is now worth $160,000. By looking at comps and market ratios, your agent will be able to help you determine a fair price.

What Terms Can We Negotiate?

Price: What you’re willing to pay and the seller is willing to accept.
Terms: Closing costs, closing date, earnest and option money, home warranty, repairs, ect.
Inclusions: What non-realty items are included.
Possession: Closing date and when you are allowed to move in to the property.
Contingencies: Loan contingency, early occupancy, inspection, appraisal, ect.

There’s a saying in real estate: “The home you look at today and will write an offer on tomorrow is the same home someone looked at yesterday and will submit an offer on today.” We like to share this saying with our clients since we don’t like to see them miss out on a property they really like.

If you have you have any questions about the home buying process, call Austin Rising at 512-297-8242.

“When we walked into the condo, we knew we had to have it. This condo had everything we were looking for and we didn’t want to let it slip out of our hands. You and your team were quick to prepare an offer and help us get it submitted. We always saw people negotiate on tv and the process always seemed scary; but the confidence of you and your team gave me a deep trust and satisfaction to help us get the terms we were looking for. Thanks for all your help!” Steve B., Purchased in East Austin