Making An Offer
If you are a first time home buyer, you may be unaware of just how many steps can be in the house hunting process. The main steps are securing a loan, finding a property you can see yourself in and negotiating a purchase price. Among those big three, the small steps in between sometimes seem like they will never end. If you have made it to the making an offer step, don’t fear, the end is within reach!
Along with your agent, you can put an offer in on your dream home. With a little luck, you can get your offer accepted. One of the things we tell our clients is to make the offer as strong as possible. The following is something that you and your real estate agent should discuss when drawing up a contract. This will help ensure that your offer is as strong as possible based on your needs and the conditions of the market.
Knowing What’s In The Offer
The first step when making an offer is drawing up the paperwork with your real estate professional. It is important to go over the offer at least once to understand what is in it. There are very important terms and contingencies contained in offers. The basics include the property address and the price. From there you negotiate the closing date you are targeting, the amount of money your earnest money deposit will be. Also included will be any contingencies that you are asking for. The offer also contains a time frame that you wish the sellers to respond in.
Choosing The Price
There is one thing that buyers are usually most concerned about making an offer and that is price. Determining the price that you pay for a home can take a toll on a person and can be a stressful process. It is very important that you discuss this process with someone that you trust, such as a member of the John & JP Real Estate Team. An important thing to keep in mind is that the housing market determines the price of the home. Your agent will take a look at all of the recently sold homes in the area and advise you on what a good offer price is. The decision is ultimately up to you, but remember that a weaker offer that goes against the market trends could hurt you and cost you the house.
Terms Of The Offer & Contingencies
It is widely agreed on that price is usually the most influential factor that a seller looks at when they decide to accept or reject an offer. However, there are other terms and conditions and contingencies that impact their decisions. For instance, you may want to write contingencies into the offer based on your ability to secure your loan, or if you have a home to sell. If you have a home to sell, you may want to write a contingency based on your home selling and securing those funds.
Something as small to you as deciding when to close escrow may make a seller more or less likely to accept your offer. Use your agent to find out any particulars that the seller might be looking for. Base your offer on that accordingly. Base your offer on the specifics of the house. There is no general rule that covers all houses. They are specific to each home. Trust your agent to make a balance of an appealing offer and protecting yourself. Keep in mind that the market conditions can also influence that.
Presenting To The Seller
The last step once you decide on a price and terms that you like, it is now time to send it to the seller. These negotiations can feel a bit tedious. It is almost like a game of telephone between you, your agent and the other party. You have the right to back out of the offer until the offer is accepted by the seller. In the event that a seller comes back to you with a counter offer, you have the ability to accept, reject or move on. From here all parties need to agree on changes and other negotiations.
When you have sealed the deal you will both be under contract. From then to closing, you will need to be working towards getting approved for the loan and performing inspections. Any unseen issues aside you have purchased the home! It will be yours as soon as you hit the close date. Keep at it, the end is in sight!