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How to Make an Offer to Buy a Condo

Real Estate

If you are interested in learning how to buy a condo or how to buy any other sort of real estate, one of the most important lessons you will learn is ho to make an offer. An offer is the price you tell the seller you are willing to pay for the home. While an offer is usually based upon the seller's asking price, it is important to know exactly what you should consider when you make an offer to buy a condo.

How to Make an Offer to Buy a Condo

Before you make an offer to buy a condo, ensure you have looked at many different properties and are truly choosing the condo that is best for you. Think with both your head and your heart. While you have to live there, a condo is also a real estate investment and you will want to choose one that is going to hold its value or rise in value, and not one that is going to end up costing you a lot of money or that you are paying more for than what it is worth.

When you are sure you have found a condo you like, it is time to consider what your offer should be. The seller of the condo will have an asking price listed, but don't assume you have to make an offer at asking price to buy a condo. Look at a number of different factors. Consider whether the condo is being sold in a distress sale. If the owner is looking to get rid of the property quickly, you may be able to make a lower offer. You should also look at what other condos have sold for. You don't want to overpay if all the comparable units in the area have been going for less. Think about cosmetic fixes and other thins you will need to change when you buy the condo and factor that in as well. Finally, if the condo has been on the market for a long time, the seller may be ready and willing to accept a lower offer than his asking price, as long as it is a fair offer.

Have your real estate agent help you determine what to offer on the basis of his knowledge of the market. Your real estate agent will ten write up the offer and give it to the seller or seller's agent. The offer should be contingent on the condo passing inspection, and you may also want to make it contingent on your ability to sell your existing home (if you have a a house already) or contingent on you obtaining financing (if you haven't been pre-approved for a mortgage already, for example.)

The seller will receive the offer and then either accept or make a counter offer. If he makes a counter offer, you have another opportunity to make an offer to buy a condo, based on his suggested counter. If he makes no counter offer and simply accepts your offer to buy a condo, the buying process will continue with inspection and ultimately with closing the deal.

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