What Is Offer Price?
Offer Price: The amount you propose to pay for a home in your offer.
The offer price is what you propose to pay. It's the starting point for negotiation and becomes the purchase price once the contract is ratified.
How to choose it
- Comparable sales: what similar nearby homes sold for in the last few months
- Days on market: homes that have been listed a long time often sell below asking
- Condition: repairs you'll need to make
- Competition: multiple offers push prices up
- Your budget: your walk-away number, from running the payment
Price and appraisal
If you offer above what comparable sales support, the appraisal may come in low, and you'll need to cover the gap or renegotiate.
Good to know
Price is only part of an offer. Deposit size, contingencies, closing date and seller credits all matter to the seller and to your costs.