You've found the house, now to buy it! Not so fast! As a seasoned real estate investor I can tell you that you have a lot more to consider than price when making an offer on a home. Lots of details are negotiable when buying real estate and it is up to you to get your best deal. Here are five points to keep in mind when making your offer:

PRICE

Yes, price is number one when making an offer on a home. But what price to offer? Start by making sure you know how long houses are staying on the market, and how much they are selling for. You should be able to just look at the property to know how much it is worth.

The best way to establish an asking price is to develop three prices, a TOP DOLLAR PRICES, a TARGET PRICE and a DREAM PRICE. Top Dollar is the absolutely highest price you will pay - the point where you will be determined to walk away from the deal. Target Price is the price you would like to buy it at. it is a good price in relation to Market Value and it is a price that you can comfortably mortgage for reasonable payments. Finally, the Dream Price is so low that it shrieks "Buy Me Now!"

When you formulate your offer, set your initial asking price at or just below your Dream Price. Most likely the seller will counter your offer. If so, you start negotiating with an goal of, ideally, reaching your Target Price but at least getting your Top Dollar Price. But who knows? The seller might accept your Dream Price!

CLOSING COSTS AND FEES

Don't forget to consider closing costs and fees. Things like filing fees, appraisal costs, title insurance and closing costs can add up. You want to get as much as possible paid for by the seller.

ADDITIONAL PERSONAL PROPERTY

When you offer to buy a house, you are buying just the house itself, plus those other items that are "attached" to it such as built in ranges or chandeliers. If you want other items - like refrigerators, some of the patio furniture or other items you must specify that in your offer.

INSPECTIONS

You should always get inspections when buying a house. Many times local law or your lender's requirements will require home inspections, pest inspections and others. Make sure inspections are done so that you see the results of all inspections. Also, what happens if something is found in the inspections.

For instance, what if the inspection discovers termite damage that will cost $550 to repair? Who pays for it? Getting such details agreed to early will prevent delays and problems later.

OTHER TERMS

Is there anything else you want the seller to do as part of the sale? Maybe you need to move in early, before the sale is closed. Perhaps you want to access the property early to do some painting? Propose this during your initial offer and get it taken care of immediately.

Buyers typically concentrate on the Price of a home when they are considering making an offer. However a real estate purchase is dependent on many details. They can effect if you are getting a good deal or not, no matter how good a price you get. Consider all these things, and you are on your way to making a great offer.

Learn more about this author, Richard Evans.
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