Making the Offer: Home Buying Advice

There’s no doubt about it, buying a home, whether your first or your seventh, can be stressful, especially when the time has come to make an offer. The pressure is high, but your blood pressure doesn’t have to be with it. Here you’ll find how to make the offer that stands out, and with making an offer, you want to be on your A-game.

The Contract

The contract is like the backbone of the whole home buying process, establishing who the buyers and sellers are, property location, in addition to the brokers involved. Having a savvy and knowledgeable real estate agent is almost a must to help clarify these details and cut through what may seem to be jargon. The contract includes:

  • Purchase Price: What you’re prepared to offer for the home.
  • Down Payment: What’s paid initially towards the home.
  • Loan Payment: The total amount you need to borrow.
  • Deposit: This payment shows you’re fully invested and serious.

Time limits are then set. One of these is for the response on the offer. Another is for obtaining financing. Then, one for closing on the home and finally moving in. All of these will have clear and specific deadlines.

You may be wondering, what’s a good price on the offer? Also what terms should be included? These are all very good questions to bring to the table.

The Offer

Take into careful consideration the property’s location and any potential market competition. For the most part, sellers will dodge dipping below 5% of the asking price, but there’s a few exceptions. Try to gauge the seller’s perceived eagerness to close; has the property been on the market a long time, or has the price already been reduced?

If each of these things are true, then they might be willing to go lower. Only your realtor will be able to help you consider these factors and negotiate the best deal possible.

Negotiating Terms

Apart from the offer price, the terms of the contract are crucially important. If you are offering full price or close to it, you should leverage that with getting terms that benefit you. Think about asking the sellers to contribute to closing costs, you may want them to throw in a home warranty if something is to go wrong during escrow.

Pre-Approval 

Obtaining a mortgage pre-approval from your lender is like getting a blessing from the Pope, it shows that you’re a serious buyer with verifiable backing to follow through on your offer amount. It also outlines a concise picture of your budget so you can go with a competitive, confident offer. It’s a win-win, not to mention it can speed up the closing process.

The Market 

It comes down to the state of the current real estate market to maximize your strategy. In a seller’s market, you will have to act fast and be as competitive as you can be with your offer. On the flip side, a buyer’s market gives you more control over negotiating price and terms. 

Look closely for low inventory levels, which can raise prices, as well as rising interest rates, and even how local market trends affect property values.

Don’t Negotiate Alone, a Realtor Can Help!

The more you learn about home buying, the clearer the process becomes. If you are looking to buy a home in the greater Encinitas, California area, contact Realtor Linda Moore today. Don’t stress over making an offer in the dark, just call or email Linda Moore to discuss the type of home you are looking for and establish a plan of action.

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