This is when you put pen to paper and specify how much you're willing to pay for the home, and under what conditions you will buy (i.e. repairs requested, move-in date, etc.).

Making a Smart Offer on the House

When calculating your offer for the home, you should consider several factors: what homes sell for in the area, the home's condition, how long it's been on the market, financing terms, and the seller's situation. By this time, you should also have a good idea how much you can afford to pay each month.

Before making your purchase offer on a house, compare the house to recent sales in the area. Your agent should have this information readily available. If the seller's asking price is above recent sale prices in the area, you should bid lower than their asking price, citing this difference as your reason.

Work closely with your agent when making a purchase offer on the home. It's a critical part of the process and not something you want to rush through or handle on your own. On the other hand, if you're in a hot real estate market where houses are selling fast, you'll want to get your offer to the seller as soon as possible. Your agent's expertise will prove invaluable in such circumstances — he or she will help you put your offer together quickly and accurately!

Lastly, be prepared to negotiate and have a plan for doing so. What will you do if the seller turns down your initial purchase offer for the house? What happens if there are offers from multiple buyers? Consider these possibilities before making your initial home offer. Have a plan in place for each scenario.