Making an offer on a house or apartment can seem intimidating because it is likely the biggest transaction you will ever make. Making an offer on a home you want can be nerve-wracking, and this is true for both first-time buyers and those who already own a piece of real estate.

If you have some direction and put in the time to do some research, you should be comfortable making an offer on a home. Like most things in life, this process can be made much :⁠-⁠*}⁠:⁠‑⁠):⁠-⁠*:⁠‑⁠X*⁠\⁠0⁠/⁠* if you break it down into smaller, more manageable phases, and the fact say that's what we're going to do in this post.

Phase 1: Make A Budget

The first preparatory step is making a budget. Remember, you want to buy a house, not empty your wallets. For many prospective buyers before you, falling in love with a home that was out of their price range resulted in disappointment and lost time. Please don't give in to this temptation! Get a firm grasp of your financial situation before venturing into the marketplace. Before commencing your search, it is recommended that you consult with a mortgage broker who will be able to examine your situation. They will provide you with a general notion of your borrowing status.

Phase 2: Get Into Action

After determining your budget and identifying a suitable property, you may start thinking about making an offer. It's not as simple as taking the asking price and deducting a predetermined amount, despite what you may have heard elsewhere. It's possible to do it that way, but we know you're smarter than that, right? But it's much more effective to have a strategy, and it's not as difficult as you may imagine.

Simple as that, just do these:

Test The Waters Of The Marketplace

Checking out the neighbourhood marketplace is step one. Making as many like-for-like comparisons as you can helps you determine whether or not the asking price for your next property is reasonable. Examine comps in the neighbourhood to see if the house you want to make an offer on is priced similarly to similar offerings. You may learn a lot about the current market from the houses that are for sale, but you should also consider the results of recent sales. 

Check Out The Location

Real estate values are good indicators of a neighbourhood's desirability, but it won’t hurt to dig a little deeper. Consider how the property can be improved in ways that also benefit your way of life and your current situation.

1. When it comes to education, how are the local institutions in the area (if any)?

2. Can you get where you need to go easily?

3. What plans do they have for this area?

4. How does this area's crime rate compare to those of neighbouring areas?

You'll be in a better position to decide whether or not the asking price is fair and acceptable if you consider all of these factors.

Phase 3: Speak With A Real Estate Agent

You should also get in touch with the listing agent. It's common practice to skip this step because buyers automatically think the agent is working for the seller. While this is true, the agent can learn a great deal more here without compromising the client.

Ask questions like:

Is there a lot of interest in this house?

Since when has this house been on the market?

How long has the current tenant been in the home?

Are there other bids for this house?

Is the seller relocating, or do they already own a home there?

Are you willing to entertain offers on this property?

Create a mental image of the seller. Understanding the motivations behind the sale, the level of urgency, and the level of competition in the market will put you in the seller's shoes. It will also give you a sense of whether or not a deal is possible.