Having a good real estate agent can be a lifesaver when purchasing a home, but their expertise comes in handy when you are ready to make an offer.
You want it to be strong, so you get it, but don’t want to overspend or blow your budget. So, what things do you need to keep in mind when making an offer on a house?
- Determine your “walk away” number. You should always have a number in your mind where the stakes are too high, and the prize is no longer worth it. Set that number ahead of time, and don’t be tempted to go above it. This number will have to do with your budget and what you and your realtor think is a fair price for the home. It is really tempting to go all-in when you find the perfect house but stick to your budget. You will be a lot happier in the long run.
- The seller’s motivation. It is easier to make a reasonable offer when you have all the facts, but one of the main things your realtor can find out is the seller’s motivation. Are they looking for a specific dollar amount? Do they need to move quickly? Are they emotionally attached to their home? Once you find out their motivation, you can tailor your offer specifically to the seller. Who knows, your lower offer might be accepted with a heartfelt letter about this being the home you will raise your family in – you never know.
- What contingencies are important? When making a good offer on a house, you need to decide ahead of time which terms are non-negotiable and which ones you can live without. When completing a home deal, you will probably go back and forth with the owners a couple of times to work out the terms both of you can live with. If you’re willing to play ball on a few items that aren’t important to you, you might solidify those items you really want. Just be open to the process.
- The speed of the offer. When you’re ready to purchase a house, time might not be on your side. It is best to submit an offer as quickly as possible. This could avoid a bidding war, or you lose the house to someone else who put their offer in first. Speed is one of the main reasons realtors encourage buyers to get pre-approval on a mortgage loan before looking at potential houses. Once you find “the one” you want to move!
- Listen to your realtor about an appropriate offer. You might be tempted to offer a meager amount of money initially. But, it might just tick the owner off enough to never work with you again. You are working with your realtor because they know the market. Also, they are skilled in the buying and selling of homes. So, listen to them when they suggest a fair market offer for a home.
Putting an offer on a home can be exciting and nauseating at the same time. Trust your realtor and stick to your budget and it will be a much smoother process! Contact any of the realtors at Robinson and Co. Realty today and get started on the journey to your new home!