Making an offer to purchase house may be the beginning of a negotiation. As a buyer, when you find a house you would like to make your home and begin preparing an offer with your Realtor, you may not want to show your whole hand (we are in Las Vegas, after all), so you may offer less than you are actually prepared to pay or you may ask for the seller to make more of a contribution to your closing costs than you actually need. Your goal is to get the best deal for your purchasing dollar, much as the seller wants to get the highest possible price for the sale of her house. That said, it’s important to keep the big picture in view. You don’t want to overpay for the house, but if you are buying in an area where appreciation is higher than in the others, such as the southwest here in Las Vegas, you may be willing to pay at or a little above recent comparable sales to take advantage of a potential higher than average increase in value which might be expected over the coming 12 months.
Sometimes, during the escrow period, the time between the acceptance of an offer and the day the property is actually purchased, the terms of the contract may change due to issues which may come up on the home inspection report or the appraisal. If the actual out of pocket costs do not change much, a buyer should worry less about where each dollar is going and focus on the end result. Are you getting the home you want at the price you want to pay? Is the monthly payment you will be making fit into your budget? Does the expected appreciation make sense for the costs incurred? As I’ve said before, quoting my mother-in-law, don’t sweat the small stuff.