Once you’ve found the right home, the next step is to make an offer to the seller. This can be a nerve wracking step in the home buying process, especially since you stand to spend a great deal of money and there is a chance that the seller will reject your offer. Here a few things to keep in mind when making an offer on a home.
You don’t have to offer the asking price. Remember, an asking price is just that. Work with your real estate agent to choose the right price for your first offer. Some things to consider: what other homes in the area are selling for, the condition of the home, and how long the home has been on the market.
A home that needs considerable repairs and updates or one that has been on the market for a long time may warrant making an offer that is lower than the seller’s asking price. But if the house is in excellent condition and has gotten a great deal of attention from other buyers, it might mean that your offer should stick closer to the asking price, or even be higher.
Keep in mind your bargaining chips. Remember that price isn’t everything. Getting preapproved for your mortgage, not having a sale contingency and being flexible on the closing date can all make your offer more attractive. Contingencies can also include home repairs and leaving major appliances. There may be other parts of the contract that are important to the seller; being flexible will help you. The easier you make the deal for the seller, the better change you have of having your offer accepted.
Put it in writing. Once you and the seller have agreed on an offer, make sure everything is in writing, even things that may not seem important. Perhaps you asked the seller to include drapes or bookshelves. To ensure those items are included in the deal, put them in the contract.
Next step: Finding the right mortgage.
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