When you've found the home of your dreams, you don't want to delay in producing your offer to purchase, so it's a great benefit to know what to expect in advance. While there is no foolproof formula for negotiating a fair price, you can begin by looking at recent sales in the neighborhood and comparing their list price to their final sales price.

If homes are generally selling at 3% to 5% below list price, you have that starting point for determining your offer. Once a price has been accepted, it's time to put it into high gear by scheduling your home and termite inspections - if they have not already been completed by the seller. If habitability issues are discovered, the seller may repair the items or offer an amount of cash for you to make the repairs after closing.

Since you already had your pre-approval letter before you started your home search, now you'll need to finalize all the paperwork with your loan officer. At this time, your loan officer may also require some money from you for the appraisal. The appraisal is performed by the appraiser and establishes for the bank the value of the home you are purchasing. If you are obtaining a government backed FHA or VA loan, the FHA & VA appraiser is also the FHA & VA inspector for the home. Any items on the FHA or VA appraiser's report will need to be repaired prior to closing or the loan will not close. After the items are repaired, the appraiser will usually be required to come back and sign off on the repairs. As a buyer, you may also want to do a walk through the home prior to closing.

As these few considerations are just the tip of the iceberg, your best bet is to always work with an experienced, professional real estate agent whose objectivity and knowledge will help guarantee a smooth transaction.