If you have found your dream home in your dream area, have been preapproved for a mortgage, and done all the research you possibly can, it’s time to make an offer. But, it’s not just about writing down a figure and hoping for the best – there is quite a process involved.
Firstly, buyers should be clear on how to go about making the best possible offer for the home they have their eye on. When a house is listed, attention is almost always drawn to the listing price and whether or not it matches comparable prices in the area. However, when you make an offer on a house, matching the seller’s price is not necessarily your only concern.
In some instances, the terms included in the offer may represent thousands of dollars of additional costs, or additional value, for you, the buyer. These terms are important and need to be reviewed carefully. Let’s look at some other important items you should consider when making an offer on a home.
How Much Should You Offer Exactly?
Often, you may hear that the amount that you want to offer ought to be a particular percentage under the asking price, or even an amount less than what you are really willing to spend. In essence, your offer really depends on the basic principle of supply and demand: if several buyers are competing for the house, sellers are likely to get full-price offers and the house may even go for more than the asking price. But, if demand in the area is relatively low, an offer a little below the asking price may be a savvy move.
How Do You Make an Offer?
The process of making an offer can vary, but typically, you will have to fill out an offer sheet that the realtor will present to the owner or the owner’s representative. The owner will then either accept the offer, reject the offer, or make a counter-offer. Since counter-offers are fairly commonplace (note that any change in an offer is thought of as a counter-offer), you should keep in contact with realtors during the negotiation process so that any changes can be reviewed quickly.
How Many Inspections Will an Offer Include?
Several inspections are common in real estate transactions. Usually, they include surveys to determine boundaries, checks for terminates, title reviews, structural inspections, and appraisals to determine value for lenders. One of the most important inspections is structural inspections. During the examination, an inspector will arrive at the home to determine whether or not there are physical defects to the property and whether costly replacements and repairs are a possibility in the next few years. Inspections for a single-family home usually take about two or three hours, and it is in a buyer’s best interest to attend the inspection. It’s a good opportunity to examine the structure and mechanics and learn more about the property than you can during an informal viewing.
Making an offer on a home is not a laborious process, but these tips should help prepare you!
<Hgtv. “How to Make an Offer for a House.” HGTV, HGTV, 8 Sept. 2015, www.hgtv.com/design/real-estate/how-to-make-an-offer-for-a-house. Brian MartucciBrian Martucci is a blogger-journalist who writes about frugal living, entrepreneurship, and innovative ideas. When he’s not interviewing small business owners or investigating time-, money- and stress-saving strategies for Money Crashers re. “Topics.” Money Crashers, www.moneycrashers.com/making-offer-house/.>