Of all the components that make up an offer to purchase real estate, price is by far the most important. After all, the goal of the buyer is to pay the least amount a seller will accept. But there are other considerations besides price that might influence the seller’s decision.

Here are some factors to consider when determining the initial offer price on a new home –

Buyer’s Market vs. Seller’s Market – Knowing the state of the local real estate market is vital when determining how much to offer for a home. A seller’s market will generally demand an offer at asking price or possibly over asking price, while a buyer’s market may warrant an offer significantly under the asking price.

Comparative Market Analysis (CMA) – The CMA is an evaluation of a home’s value based on similar, recently sold homes in the same area. When you are ready to make an offer, the CMA gives an idea of what a fair price range would be to open with, and can help you respond with a counter offer if you think the seller’s asking price is still too high.

Days on Market (DOM) – The number of days a home spends on the market directly affects the price of a home. Plus, this information can be used to the buyer’s benefit to negotiate a lower price. Buyers should always take a look at the number of days on market to determine how other buyers are reacting to the property.

Previous Sales Price – The homes sale history can be a very helpful piece of information when determining the seller’s motivation and how much to offer. By learning the previous sales price of a home, you can find out if the property has appreciated in value and by how much. In New York City, historical property records are a matter of public record.

All Cash vs. Mortgage – Some sellers choose all-cash offers over higher-priced offers with loan financing because they know a cash offer with proof of funds will close faster and face fewer stumbling blocks. Because sellers prefer cash deals, buyers willing to pay with cash have an inherent advantage over those who need to borrow.

Contingencies – From the seller’s point of view, purchase offers with contingencies carry more risk than non-contingent offers. However, the seller might be intrigued by your offer price, but still want to negotiate some of the finer points of your terms and conditions to their advantage.

Buyer Emotions – How badly do you want the home? How would you feel if your offer got rejected? If you’ve been house-hunting for a while and you’ve finally found your dream home, it may be worth it to consider offering exactly what they’re asking for—or a bit more—to let the seller know you’re ready serious.

Seller Motivation – Price isn’t always the deciding factor. To find out what is motivating the seller, have your buyer’s agent do some digging. Buyer’s agents who are persistent, communicate well and follow up aggressively by calling and speaking with the listing agent, are far more likely to discover the true motivations of the seller.

Multiple Offers – Probably the single most important thing to know when making a final decision as to how much to offer is whether you have any competition – whether the seller will be considering any other offers at the same time as yours. When you are competing in a multiple offer situation, a new set of offer selection protocols are activated.