Definition
The price you propose to pay for a property when submitting your purchase offer. Offer price is your starting point for price negotiations and should be competitive.
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Buyers determine their offer price based on comparable sales, their maximum budget, market conditions, and negotiating strategy. A lower offer may be used as a negotiating tactic or reflect a buyer's assessment of the property's true market value. In hot markets, buyers often offer above asking price to remain competitive.
Pro Tip
Make your initial offer strong enough to be taken seriously, but leave room for negotiation.
Example
Based on comparables showing similar homes sold for $410,000-$420,000, the buyers made an offer price of $415,000 on the $435,000 list price.