You have found it!

Your dream home the one that just makes your heart soar and imagination race.

Now comes the hard part – the offer. Often referred to as the art of negotiation this can be an intimidating moment. If your offer is too high – you will be kicking yourself for years that you paid too much, too low and you risk offending the current owner and losing the chance to own your dream.

This is where research comes into play – you must know the housing market you are buying in. Your Denver real estate agent is a good sounding board. Things to think about

• Is this a Buyers Market or Sellers Market – In a buyers market sellers are often a little more flexible in what they are will to accept to sell their property. In a sellers market there are more buyers than sellers making it a competitive market.
• How long has the property been on the market? Is it currently vacant? This may also indicate a motivate seller.
• Comps – your real estate agent can provide you with a list of recent sales in the neighborhood. The comps will show selling price, length of time on the market and how it compares to the property you are looking at.
• Sellers Motivation – Life changing situations can also determine the mindset of a seller. Does the owner already have their next dream property lined up? Have they recently lost a job? Are they empty nesters? Your realtor may have valuable input on this.
• Your situation also comes into play – do you have a conditional offer, meaning you have to sell your current home first? Or can you offer a flexible closing which can be considered quite valuable in some cases.
• And lastly, your own motivation. How badly do you want this property? Can you wait for the next one? Do you need a place in a certain time frame? Are you willing to walk away if your number is not accepted – or will it haunt you for months that you let it slip through your fingers?

You want to purchase a house that will be your home, and the price you pay for it will impact your future payments. Current interest rates mean that a $10,000 increase in price represents an extra $50-60 month on a 30 year mortgage.