How to Make an Offer You Can Afford

You want to keep your emotions in check, balancing against the realities of the market. You don’t want to be so excited that you tip your hand to the seller. On the other hand, you don’t want to be so conservative that you bid too low and lose out.

If you’ve taken the important step of getting pre-approved for a mortgage, you know exactly how much you can afford. This way, you’ll be less likely to get caught up in a bidding war that will carry you above your price point.

Of course, the interest and potential competition for a property depends on market conditions. If it’s a buyer’s market, you hold the cards and you’ll be confident in knowing there are other options out there. If, however, it’s a seller’s market, acting fast to make an offer that you can afford and is acceptable to the seller is a combination of instinct, preparation and the experience of your RE/MAX agent.

One of the most important tools you have when it comes times to make an offer are the comparables your RE/MAX agent generates from the Multiple Listings Service (MLS). These are excellent snapshot reports into the recent sales activity of comparable properties in the same neighbourhood. You can see important information such as original and adjusted asking prices, number of days properties were on the market, listing agent history and actual selling prices.