Making your first offer is an important step and calls for a significant amount of preparation and analysis. Go in knowledgeable, with consideration of all the components of your price offer when submitting the proposal to the seller. You are not so much responding to their listing price as using your own factors in arriving at your offer. The two are not necessarily related. An important component is a comparative market analysis, which is a mathematical model to find out the real market value of your future home. It calculates the basic elements, such as number of bedrooms, bathrooms, and existence of a yard or swimming pool. Then it compares your potential home to similar houses on the market in your area. This model will give you an idea of the average local cost, which will be fundamental for your offer. After the approximation, add or remove the components that increase or decrease the value. For example, you know that the current owners have recently changed all the plumbing in the house. Or the opposite, their plumbing is fifteen years old and will probably start breaking down soon. Get estimates for any immediate repairs necessary, or ask for estimates. 58
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