Before you make an offer

Last update: November 16, 2007 - 2:45 PM

Get pre-approved for a mortgage by a reputable lender. "It puts you in a stronger position and gives you credibility with the seller," said sales agent Deb Greene.

Look over the seller's disclosure statement. It's a document required by the state that details the condition of the home and any defects. Look over the city inspection report required by some cities, such as Minneapolis, before the seller lists a home. Note the home's features that will require an infusion of money such as new carpet, major landscaping, a new roof.

Do a current market analysis. Compare square footage, number of bedrooms, amenities, sales pending and sold data on similar properties in the area. Have the data with you when making an offer. Also look up what the seller paid for the home, (especially if purchased within the past few years), verify property taxes and other information from county records. "Show them how they stack up," said Realtor Mark Bartikoski.

Find out why the owner is selling, if you can. "You may be able to figure out how motivated the seller is and that can help you negotiate a price," Greene said. Bartikoski believes in most cases, it's not relevant. "It comes down to what the house is worth to the buyer," he said.

Pull the cumulative days on the market report with the pricing history. Sellers may have already greatly reduced the price, so there's less room for negotiation.

When you make the offer: Have the data justifying the price you are willing to pay.

The risk of going too low: You may not be taken seriously, you may offend the seller so they won't counter-offer or consider any future offers.

After you make the offer: The buyer will accept it, decline it or counteroffer. A counteroffer can be a dollar amount or a negotiating tool, Greene said. "They may throw out ideas about a more convenient closing date, home repairs or terms of inspection."

LYNN UNDERWOOD

Recent Homes stories

Ramblin' roses: Cities are sprucing up midcentury homes - November 16, 2007

Ramblin' roses: Cities are sprucing up midcentury homes - Coon Rapids and other aging suburbs are promoting upgrades to classic ramblers, Cape Cods and split-levels to try to keep buyers interested. More