Bryan puts his house on the market, and Alex and Karen fall in love with it. It has everything they were looking for in a single-family home—a nice yard, well-preserved Craftsman architecture, and enough room for the kids.
The original price:
Bryan has listed the house at $310,000. Alex and Karen's real estate agent thinks that's a bit high for the neighborhood, but the house is in great condition. It's also more than Alex and Karen want to spend.
Alex and Karen’s real estate agent helps them craft a letter that states an offer of $290,000. They make it clear how much they love the house, describe their plans to raise a family there, and mention the home quilting business that they want to start. Their agent delivers the letter to Bryan's agent.
Bryan receives one other offer for the house, an offer for $295,000. But the house has sentimental value to him—his family has owned it for two generations. Working with his agent, Bryan makes a counteroffer of $305,000, and offers to pay for the home warranty for a year.
The new offer:
Alex and Karen take a hard look at what they can truly afford, and decide they can't safely afford the payments on more than $295,000, given the interest rates available. Working with their agent, they craft a new offer letter that says $295,000 is their limit, but they agree to cover the one-time cost of extermination, which the house will likely need. They of course make it clear that this is contingent on the house passing inspection.