Once you have found the perfect home for you that is within your budget, you will need to make an offer on it. Here are a few tips on how to go about doing this. As always, work with your real estate agent to make sure that this process goes as smoothly and as stress-free as possible.
1. Tailor fit your bid to the seller’s circumstances if possible. If the seller is in desperate need of money or severely cash-strapped, they will be more likely to accept an offer that is lower than their asking price. If the home has been on the market for a longer period of time, this can also make the seller more amenable to accepting a lower offer. If the seller has already bought another house and is not living in the home you want to buy, it may also be easier for you to bid less on it.
2. Look at comparables before you make your bid. Your real estate agent will be able to help you with this. Find out what other homes in the area started off as (asking price) and what they actually sold at. If there is a consistent pattern where homes in the area sell for below the asking price, think about making an offer along those lines.
3. If you fall absolutely head over heels in love with a home and will not settle for living anywhere else, be prepared to pay the asking price, or even make an offer that is ABOVE the asking price. The rules of supply and demand may sometimes force your hand in this, especially if several people are competing for a few homes. Again, work closely with your real estate agent to determine what kind of real estate market you are buying in, so that you’ll know to lead with a high bid if it’s a seller’s market.
4. Once you’re ready to formally make your offer, work with your real estate agent who will forward it to the seller’s representative. The seller will then decide to either accept, reject or make a counter offer. Include earnest money with your offer. Once you sign an offer, you are officially in escrow, meaning you are committed to purchase the home or lose your deposit. During escrow, which typically lasts 30 to 90 days, your lender will finalize your mortgage and arrange for purchasing financing.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
