Helen's blog

Find Yooour

Before making a home offer

If you’ve narrowed down your choice of a home to one, you may be eager to make an offer and get negotiations started. If you’re buying in a tight market where sellers have the upper hand you may even feel pressured to put in an offer the moment you see a house.

Buying a home isn't a small project and to make sure the process is stress free, you need professional partners such as a reliable real estate agent, a first-class mortgage broker and a thorough home inspector.

There are several resources online that will help you prepare to make an offer on a home.  FindYooour.com have many helpful tips and resources that will prepare you to make an offer.  A real estate professional can provide you with market statistics and recent sales comparables to help you make an informed decision. FindYooour.com puts those reliable professionals at the tip of your fingers, whenever you need them most!

Homes Under Agreement, Sold & Market Statistics

Before making an offer, buyers should ask their real estate professional for the latest market report on the area.  Buyers should know what homes are selling for, as well as what homes are under agreement.  If you hear the term “under agreement” or “under contract” that means the house has a signed contract or offer between the buyer and seller, but they have not executed a purchase and sale agreement. 

This gives the buyer the opportunity to do their due diligence.  Many offers have contingencies, such as a home inspection contingency. You can find every professional you need on Find Yooour.com, and you can contact them directly to inquire about their services, availability and even schedule a meeting.

Low-Ball Offers May Create Backlash

It is not uncommon for buyers to submit low-ball offers in a down real estate market.  The caveat is that the low offer may offend the seller and they may decide they would rather sell to someone else. 

There was a client that submitted a low-ball offer that made the seller so upset that they refused to do business with the client.  After several conversations with the seller’s broker, the seller did eventually negotiate with the buyer, but it took well over a week for negotiations to recommence.

Review Contingencies with Your Real Estate Professional

During the offer process, you should speak to your broker about contingencies that should be built into the contract.  Common contingencies are home inspection and financing.  It is essential to have these contingencies built into your offer, so that you can back out of the contract should the house have serious issues or if you cannot get financing.

You do not want to be stuck with serious structural, systems, or other expensive home repairs.  If the home inspection reveals expensive repairs needed and you still want to buy the house, then you now have the leverage to offer a lower price, with the home inspectors report as your ammunition.

Property History

Ask your real estate professional to gather as much history on the property as possible.  It would be nice to know the age of the appliances, hot water heater, roof, HVAC, electrical, and other high ticket items that come along with home-ownership.  You should budget for appliance repair and replacement in their first 2 years of owning your new home.  This way when a hot water heater bites the dust, you have a little bit of extra cash socked away to cover the cost.

Review Personal/Family Budget

This is a good time to review your personal/family budget. Your monthly housing payment includes more than just the principal and interest on your loan. Make sure the taxes, insurance, homeowner association dues and utility bills will fit into your budget. Ask your real estate professional to give you a quick update on mortgage rates. FindYooour.com gives you a whole array of professionals to choose from once you sign up with the site.

Get Pre-approval Letter

When a person/family decides they want to purchase a new home, then they should start the process of looking for a lender.  It would be wise to have a pre-approval letter in hand before you start to make offers.  The pre-approval letter gives the buyer more leverage; because the seller knows that the bank has reviewed the buyer’s financials and are willing to lend them the money. 

It is a good idea to have your real estate professional, mortgage broker, or lender inform you often about current mortgage rates.  I recommend working with your real estate professional or mortgage broker to get quotes from several banks.  Below is a link to the HUD website, which has an informative brochure on getting the best mortgage.  http://www.hud.gov/buying/booklet.pdf

Concessions & Conveyances

Think about what concessions you would like the seller to pay for or offer.  For example, you may want the seller to pay for closing costs or a portion of the closing costs.  You may want to ask for appliances to be a part of the sale.  Make sure you put these in writing and in the offer.

Offer Price

Keep in mind that the seller may counter your offer with a higher price.  Consider what is the most you are willing to pay for the property.  It is a good time to review the sales comparables and homes under agreement with your real estate professional to ensure you are not overpaying for the home.

Remember, if your offer is accepted it becomes a legally binding contract, so think carefully about what you want and what you can afford.

Sign up with FindYooour.com and get instant access to reliable professionals whenever you need them. We are set up to serve agents and buyers alike, so sign up today and experience a whole new world of real estate.
 


Comments:









Copyright © 2015 FindYooour.com - All rights reserved.