Buying a house is not only one of the most exciting challenges to take on, but it can be a stressful one as well. What’s the best approach to take when putting in your offer to avoid stress and worry? Preparation.
Being prepared, knowing the market, and feeling confident in your offer will make the whole process smoother and more successful. Take these seven things into consideration before putting your offer on the table.
Set Your Limit
It’s good practice to go through the process of pre-approval before you decide on a house. This not only makes the process more seamless once you’re ready to settle in, but helps you find clarity on your absolute budget. You’ll avoid falling in love with a house out of your reach with clear limits.
Get the Scoop
Once you’ve found your potential new home, your agent should communicate with the listing agent to get the scoop on what other offers have been made. This gives you more information about your competition and helps you make an educated offer.
Name Your Price
While making a strategic offer is an art and science. You’ll want a great deal on your house, but going too low can set you up for rejection. While price is negotiable when buying a home, there are other ways to get the most out of your money outside of the offer price.
Contingencies are extra steps that need to be made for the offer to go through the final stages. Having fewer contingencies usually makes for an easier sale. Bank pre-approvals is one way to minimize the contingencies on your end. For the seller, they will have to pass inspections and this is to your advantage. Make sure to go over any and all contingencies with your agent to secure your bet bargaining position.
Depending on your circumstances, it can be advantageous to set your specific closing date. This is important if you have other personal circumstances that will be affected by moving such as a new job, selling a previous home, etc… Otherwise, allow the seller to choose their best date.
You’ll want to consider any closing costs you’ll incur in your budgeting for the down payment. This tends to be about 1-2% of the selling price and is split between seller and buyer. You can choose to pay these upfront or consider negotiating with the seller. They may be able to pay your portion by adding your costs to the total sale of the home so you can pay it back with your mortgage.
If something in the home has caught your eye, consider adding into your offer. This is considered “personal property” and includes items like furniture and other removable pieces.
There is a lot to consider when making an offer and buying a home. Follow these considerations to stay on top of your options and make your best, educated offer!