Although many first time home buyers may assume that finding your ideal home is the hardest part of the home buying process, more experienced buyers will tell you that in reality, making the bid is typically more time consuming. Making your offer is an important moment and one that you should approach with care. Since your agent may not want to suggest a price for you to offer, it falls on you to do your homework and make a successful bid.

Before you even set out to contemplate what a practical offer may be, make sure to perform thorough research. First, try to find out under what circumstances the seller has decided to sell their home. You may not be able to access this information, but it's worth the effort to ask the listing agent.

Next, you should look into the market status and conclude whether it is a buyer's market or a seller's market. If it is the former, there will be less competition, and the seller may be more willing to bargain. If it is the latter, chances are that you're not the only potential buyer in the running, and the seller won't accept an offer under their list price.

The next thing you need to look at is the price of homes that are like the one you want. You want to look at properties that have sold in the last few months (don't go older than six months) and compare the selling price. Find properties that are close to the one you want and that have similar features, sizes, and so on. This should give you a really good handle on what properties are going for in your area.

Consider the current average per square foot prices in your area.
Although this number is not a good way to come up with a price for the home, it is a great way to access how homes are doing in your local area. You can determine from this number whether prices are going up or down in your own local real estate market.

Also try to find out the current mortgage balance that the seller is carrying. If the seller has already relocated and still owes a high amount on the home, they are much more likely to negotiate. If, however, the seller has already paid off the home, then negotiations will be much more limited.

After implementing the strategies mentioned above, make an offer. Your seller will more than likely make some type of counter offer. It is very characteristic for a seller to make a counter offer and not accept the first bid. Although your agents usually handle this negotiation process, it is in your best interests to stay on top of the process and be aware of what is going on. If you do not remain pro-active, it is possible that another buyer could jump in and purchase the home you wanted. You also have the choice to converse directly with the seller if it is agreeable to both parties. The negotiation process can go on for an lengthy period of time, or it can be very short. It is important to be very patient and simply remain aware of what is going on. Maintain a professional relationship with your agent, and don't hesitate to ask questions. By keeping up with the process, you are much more likely to get your home and to get it for a price that is agreeable.