by Brandon Cornett
So you've weeded out all the "maybe" houses and found "the one." The
next logical step is to make an offer. This is where you put pen to
paper and specify how much you're willing to pay for the home, and
under what conditions you will buy (i.e. repairs requested, move-in
date, etc.).
A written offer usually includes the following:
* Complete legal description of the property
* Amount of earnest money
* Down payment and financing details
* Proposed move-in date and closing date
* Price you are offering
Making a Smart Offer
When calculating your offer, you consider several factors: what homes
sell for in the area, the home's condition, how long it's been on the
market, financing terms, and the seller's situation. By this time, you
should also have a good idea how much you can afford to pay each month.
Work
closely with your agent when making your offer. It’s a critical part of
the process and not something you want to rush through or handle on
your own.
On the other hand, if you’re in a hot real estate
market where houses are selling fast, you’ll want to get your offer to
the seller as soon as possible. Your agent’s expertise will prove
invaluable in such circumstances -- he or she will help you put your
offer together quickly and accurately!
Before making your offer,
compare the house to recent sales in the area. Your agent should have
this information readily available. If the seller’s asking price is
above recent sale prices in the area, you should bid lower than their
asking price, citing this difference as your reason.
Lastly, be
prepared to negotiate and have a plan for doing so. What will you do if
the seller turns down your initial offer? What happens if there are
offers from multiple buyers and a bidding war develops? Consider these
possibilities before making your initial offer. Have a plan in place
for each scenario.
And when in doubt, follow your agent’s advice!
Learn more:
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Online at http://www.HomeBuyingInstitute.com
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