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Address the seller and introduce yourself. If you know the seller's name, use that, but you likely won't know the name of the owner of the home. ... Detail what makes the home stand out to you. ... Find something in common. ... Present your offer. ... Note any contingencies you have. ... Close with a friendly thank you.
Typically, a lowball offer is considered to be at least 20% below the asking price. If you're offering 10% below, the property should be in a good condition but may just need some cosmetic work done. The goal of offering 10% below the asking price is to use those extra funds to cover the repairs.
If a seller decides to go with a higher offer, she must communicate that to the original buyer immediately?and return any deposit presented with the initial offer. But here's another option: A seller could allow the original buyer to present a counteroffer. Granted, the buyer may not want to.
The home buying process doesn't end once the seller accepts your offer. You'll have to complete steps to assure the seller that you're equipped with the proper financing to close the sale, and the seller will have to open the house up for appraisal and inspection to assure all parties that the house is sound.
You won't be able to offer more than you can afford, so it's important to determine your budget upfront. Some financial experts use a rule of thumb that says your home should cost no more than two or three times your annual household income.