When you prepare an offer to purchase a home, you already know the seller’s asking price. But what are you going to offer and how do you come up with that figure?

Determining your offer price is a three-step process. First, you look at recent sales of similar properties to come up with a price range. Then, you analyze additional data, such as the condition of the home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home. Your Realtor will walk you through these steps and assist you in determining what dollar amount and terms and conditions to put in your offer.