Although many first time home buyers may think that finding the ideal home is the hardest part of the home buying process, more experienced buyers will tell you that in fact, it is the price proposal aspect 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 set out to evaluate what a fair offer may be, make sure to perform thorough research. First, try to determine the circumstances under which 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 step is to research some of the real estate market data in your area. Find out whether the area where you intend to buy is more favorable towards buyer's or seller's. If it is a buyer's market, then you should have an advantage because there won't be as many other buyers contending against you for the sale. If your area is experiencing a seller's market, you may have a difficult time getting your bid accepted because other buyers will be bidding against you.

Make sure that you contrast the list price of your prospective home to recently sold real estate that are similar when it comes to size, age and locality. This will give you a broad sense of how much other buyers have paid for like properties. Keep in mind that anything sold more than six months previous to your query will not be applicable.

Another aspect to consider is how much homes are going for in your area in terms of the average price per square foot. Although this is not the definitive way to come up with a price to offer for the home, it is a great way to judge whether home prices in your area are going up or down.

In addition, it is helpful to know the seller's mortgage balance. If the former residents have already moved out and this balance is high, then they may be more anxious to sell and, therefore, more willing to bargain with you. If the remaining debt is low, then they may hold out for a buyer who is willing to pay the list price.

When it you are ready to make a bid, be prepared to get a counter offer. It is typical for this to be time of negotiation, and rarely does a seller take the first bid. Although usually the offers and counter offers are made through the real estate agents, you can negotiate directly with the seller if you chose to do so. This part of the purchasing process can be time consuming or brief, depending on each unique situation. Stay up to date with what is going on during the negotiations to make sure that another buyer does not step in and outbid you. This procedure requires patience and perseverance, but if you follow these tips you will be prepared for what happens during a real estate purchase.