Let’s say you’ve been researching a particular part of town as a potential investment opportunity. Perhaps the schools have recently been highly rated or a major employer is moving to a location near the area. Or just that the housing market is showing signs of recovery and it’s time to make a move and making a solid offercatch the wave, so to speak. However you’ve developed a penchant for an area, make sure your offer comes not from your heart but your head.

This can be especially dangerous to your financial well-being when buying a property that didn’t quite add up after all. Maybe you’ve been looking and looking in a certain neighborhood and finally a potential candidate hits the market. Maybe to get the elusive rental your numbers begin to be a bit inflated just so you can make the transaction work. The fact is that if you’re forced to make the numbers work it’s likely they won’t once your numbers float back down to reality.

If you’ve got a fixer-upper and you want to flip it, estimate your after repaired value on the low side. If the numbers work with a lower value they’ll more than work with a higher one. Look at multiple comps in the area that have sold and pay more attention to those sold in the last three to six months than sales from a year ago. Doing so will help you identify trends and get a more firm grip on the profit to be made.

When you’re comfortable with the numbers make your offer. Some say to make a reasonable offer that will ensure your offer is accepted and that it’s not so low the seller will be insulted and refuse to even counter. Maybe, but your goal is to get the best price you possibly can. Don’t make a ridiculous offer, but make one that you think has a 50-50 chance of being accepted. If you’re a bit uncomfortable with your offer that it might offend the seller, you may have just hit the right price.