Although many first time home buyers may think that finding the perfect home is the hardest part of the home buying process, more experienced buyers will tell you that in fact, it is the price proposal part of the purchase that takes the most time. 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 sound offer.

Before you even begin to contemplate what a practical offer may be, make sure to perform thorough research. First, try to figure 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.

The next area of research to approach is your individual local real estate market. You need to know if your local market is geared towards buyers or sellers. If you are in a buyer\'s market, there won\'t be as much competition over the home you want. In other words, there may not be other bids out there on the home. If it is a seller\'s market, the owner of the property may be far less likely to negotiate with you. The owner may not accept your offer because there may be several other interested parties.

The next area to examine is to find out what comparable homes have sold for recently in the nearby vicinity. You need to compare the home you are interested in to homes with the same size, age, and neighborhood. You have to look at recent sales; anything older than six months simply does not matter. However, this information will give you an excellent picture of what you can expect to realistically pay for a home in your vicinity.

Also attempt to find out how much of the mortgage remains to be repaid by the current owner. If the owner still has a high amount of debt or has vacated the premises, they may be more eager to get out from under the mortgage payment. Conversely, if the owner has little or no debt remaining, they can wait for a bid that suits them at their leisure.

Don\'t let the property owner or real estate agent hurry you into making a proposal. Take the time to prepare your initial offer, and think about your negotiating strategy. If at all possible, make an offer below the price which you are reasonably willing to pay. Still, it\'s important not to make a bid so low that the buyer makes the assumption that you aren\'t resolute or don\'t understand the marketplace. Assemble a list of things which you might be willing to give up, in order to pay less. Furthermore, put together a list of things you might demand if you have to pay more than your first offer. Settle on the maximum you are willing to pay, and stay with that. If you tell a seller that a bid is your final offer and then make another bid, you lose credibility. Take some time to review your financial situation, and assay your approach before presenting a second or multiple bids. Don\'t get pulled into spending more just to \"win\" the deal. Remain pleasant and focused. Cultivating a relationship with the seller can sometimes be the biggest influence when a homeowner has to make a choice between two bidders. When you take the time to make a plan, do your research and stick to your strategy you\'ll have a better chance of having your offer accepted.