Buying Your Home and Making an Offer
Buying your home involves more than choosing a property. Pricing, negotiation, and contract terms all affect the offer process. The questions below address common concerns buyers face when buying your home and preparing an offer.
Can you buy homes below market?
While buying your home below market is possible, it requires patience. While many buyers view only a few properties, investors searching for bargains often review many more.
Several strategies may help buyers find opportunities:
• Buy a fixer-upper in a transitional neighborhood
• Purchase a foreclosure after careful research
• Buy a home scheduled for demolition and relocate it
• Purchase a partial interest, such as a tenants-in-common arrangement
• Buy leftover inventory in a new-home development
True bargains are rare and require careful evaluation.
What is the difference between list price and sales price?
The list price shows what the seller hopes to receive. The sales price reflects what the home actually sells for.
Market conditions influence both. If a property receives no early offers, sellers often adjust pricing to attract buyers.
Are low-ball offers advisable?
A low-ball offer is far below the asking price. While sellers can review any offer, extreme discounts often stop negotiations.
Unless a home is clearly overpriced, sellers usually reject low offers. Buyers should research comparable sales before making an aggressive offer.
In some cases, a lower price paired with a fast closing may appeal to a motivated seller.
What is the difference between list price, sales price, and appraised value?
The list price is the advertised amount. The sales price is what the buyer agrees to pay.
The appraised value is a professional estimate based on comparable sales, property condition, and market trends. Reviewing all three helps buyers judge value when buying your home.
Is a low offer ever a good idea?
In a buyer’s market, motivated sellers may accept or counter a lower offer. Even so, full-price offers often appear stronger.
Sellers also consider:
• Financing contingencies
• Inspection requests
• Cash versus financed offers
• Repair demands
In some situations, a lower cash offer may outweigh a higher financed offer.
What contingencies should be included in an offer?
Most purchase offers include two standard contingencies:
• Financing contingency
• Inspection contingency
Contracts should also outline seller responsibilities. These include clear title, property condition through closing, and agreed-upon repairs.
Buyers may forfeit deposits if they exit a contract for reasons not stated in the agreement.
Who gets the furnishings when a home is sold?
Fixtures remain with the home unless stated otherwise. These items include anything permanently attached.
Items not permanently attached are negotiable. Common examples include washers, dryers, and refrigerators.
Who must disclose property information?
In most states, sellers must disclose facts that affect property value or desirability.
Disclosures often include:
• Homeowners association rules
• Permit and code compliance
• Neighborhood nuisances
• Zoning restrictions
• Prior property issues
Disclosure requirements vary by state. Buyers should review local rules before closing.
How do you determine the value of a troubled property?
Buyers considering foreclosure properties should gather as much information as possible from the lender.
When interior access is limited, neighbors and public records may provide insight. Online property databases also help buyers compare values.
What are some tips on negotiation?
Understanding seller motivation strengthens negotiation. Sellers facing relocation or personal changes may accept lower prices for faster closings.
At the same time, buyers should avoid offers that appear unreasonable or uninformed.
Do you need an attorney when buying a home?
Attorney requirements vary by state. Some states require legal representation, while others do not.
Even when optional, buyers should fully understand contract terms. Consulting an attorney may help prevent future legal issues.
What are standard contingencies?
Most purchase offers include:
• Financing contingency
• Inspection contingency
Contracts must clearly define seller duties, repair agreements, and closing conditions.
Final Thoughts on Buying Your Home
When buying your home, understanding pricing, offers, and contingencies helps buyers move forward with confidence. Careful preparation leads to stronger offers and fewer surprises.
