Making an offer on a home includes more than naming a price and waiting for a counter offer. You, as a buyer, should be aware of other options available to you in drafting the contract.

Before shopping for a new home, you should be pre-qualified for financing by a reputable lender for an amount in accord to your income and debt.

Once you're pre-qualified, you and your agent can concentrate on price range and location. Location is the primary factor in the asking price set by the owner. The more desirable the area a home is in, the higher the price.

Leverage for the buyer in making an offer lies in the condition of the home. As a buyer, you shouldn't take the house at face value. Having an independent inspection performed provides important information about the condition of the foundation, the heating and cooling system, the plumbing and electrical, and overall infrastructure of the home.

The cost of the inspection lies with you, the buyer. You can make an offer, and include in the contract a clause stating the offer is contingent on the outcome of an independent inspection. If the outcome is not to your satisfaction, the contract is void.

If the owner won't agree to an inspection, consider walking away. The fresh paint and new carpeting may be a bid on the part of the owner to distract from serious structural problems.

If you still want the house, consider a home warranty. The seller provides an insurance policy against issues with the plumbing and electrical, heating and cooling, and the appliances included in the sale. The policy is in force for a designated time. These types of policies can be obtained from companies such as Home Warranty of America.

Another form of leverage is the motivated seller. He needs to sell as soon as possible for any number of reasons. Though he has set the price of his home at market value, the price homes in the area are getting, he may be willing to accept a lower offer if time is working against him.

Avoid the mistake of making an offer based on what you can afford instead of the value of the home. Confine your search to homes you are pre-qualified to finance.

Don't lowball' a seller. It's irritating and the seller is unlikely to consider further offers from you.

When drafting your offer, base your price on the market value of the area, and the condition of the home. Consider how motivated the seller is and how long the house has been on the market. These few simple guidelines will make your offer more attractive, and get you the best deal possible.

Learn more about this author, Shelly Mcrae.
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