HOME BUYER'S GUIDE

( What is the Best Way to Make an Offer on a Property? )

Choosing an Amount to Offer

You've set your budget, looked at houses to buy, and discovered one you want. So, how do you figure out how much to give? It's vital to stay within your budget, but there's more to buying the house you want than just a number. When considering how much to give, keep the following factors in mind:

    • Are there any comparable homes on the market in the same neighborhood? You may know how much competition you're up against by looking at how long they've been on the market. Your offer should be more substantial the more competitors you have.

    • When was the last time you looked at the house? If it's been a long time (more than two or three months) or has been listed several times, it's time to take action.

    • Do you anticipate having to compete with other buyers? There's a chance you'll get into a bidding war if the house is in a very sought region. Before you make your first offer, you'll need to decide how high you're willing to go. If you foresee additional offers on the house, it could be good to make your best offer first.

    • Is the home in need of repairs or renovations? Keep these potential costs in mind to help you stay on track.

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What Should Your Offer Contain?

Your real estate agent can assist you in contacting the seller and submitting an offer in writing when you're ready to make an offer. Your real estate agent will most likely write the actual offer letter, but here are some items to expect:

    • The residence's address

    • Names of anyone else who will be purchasing the home with you, such as your spouse.

    • The value of your proposal

    • Any contingencies you're asking for (conditions that must be completed before the sale is finalized), such as a satisfactory house inspection

    • Any seller concessions you'd like (i.e., anything you're asking the seller for), like as money toward closing expenses

    • Appliances and window coverings are examples of items you might wish to include in the sale.

    • Your earnest money deposit is the amount you put down as a deposit.

    • Your approval letter, so the seller knows you won't have any financing issues.

    • When do you think you'll be able to close?

    • When do you want to move into your new home?

    • The time limit for responding to your offer

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How to Make a Purchase Price Negotiation

Suppose the seller accepts your first offer. Congratulations! You've just purchased a home! Your lender will send you a Loan Estimate outlining your loan's fees and costs, but keep in mind that these figures could fluctuate by up to 10% before the loan is closed. Your lender will send you a Closing Disclosure before you close, detailing your final numbers, so you know precisely what you're paying for.
If the seller rejects or challenges your initial offer, you must decide how to proceed. Your agent can contact the sellers to see if they are prepared to bargain, and you can trade counteroffers to discuss the purchase price and other aspects of your offer, such as the move-in date.
Because negotiating can be stressful, it's critical to remember your objectives. Remember that it's OK to walk away if you and the seller can't agree. There will always be a new house to live in. Because this is a long-term investment, you should think about it that way.