As a first-time homebuyer, owning your dream home can be one of your lifetime achievements. It requires huge capital investment and it’s very important to make the right choice. Putting an offer on a house can be a complicated process especially for first-time homebuyers. When the demand for homes is high, remember you will have to compete with other homebuyers. For your offer to stand out, you need to clearly understand what it takes to make a winning offer.
If you are not familiar with the process, the following are the steps that you need to follow when making an offer on a house.
Search for your dream home
Before you can even start making an offer, you need to first-of-all find the right home that suits your preference. Start by knowing how much home you can afford by getting pre-qualified. Once you know the kind of homes that you can afford, the next step is to attend home showings, open houses, or conduct an online search on popular listings in your area.
Engage a professional real estate agent
Working with a real estate agent can take a huge burden off your shoulders. They will provide you with a huge list of homes for sale that falls within your budget in your locality. They also have access to local Multiple Listing Service (MLS) and they can also help you get loan pre-approval fast.
Set your offer price and include any contingences
Once you are satisfied with a particular house and you can afford it. You need to start expressing interest by making your first offer. If you want to get a room for negotiation, you can set your initial offer at a lower price compared to the maximum amount you are willing to spend on home buying.
Setting contingencies and timelines also help a lot in a competitive market where the home seller is set to receive multiple offers from different prospective home buyers. If you are working with a real estate agent, you will be guided on how to draft a winning offer.
Submit your offer
Your offer should be drafted in a purchase and sale agreement form. Your real estate agent will be instrumental during the drafting process and you will then sign it before it’s submitted to the home seller or their respective agents. If the seller accepts your offer, it will become a legally binding document.
The seller replies with either YES, NO, or Counter-offer
Once the seller reviews your offer they might choose to either accept it as it is, reject it, or issue a counter-offer that creates room for the negotiation process. If the offer is accepted right away the seller signs the purchase and sale contract. If they turn down your offer, all negotiations end but if they give you a counteroffer, you are at liberty to accept their counter-offer or counter back.
When the negotiation process is going on, there are many other aspects of the house that both the seller and buyer or through their agents discuss about apart from property price. It can include issues to do with renovations, contingencies, and timelines.
The signing of the contract
If both parties strike a deal and reach an agreement about the ultimate house price, inspections, and repairs, the contract is signed and finalized. The subject home becomes “under contract” and if all goes well, you are assured of becoming a new homeowner soon.
Once, everything is finalized, your agent will conduct a final walk-through to your home to find out if everything is as planned and if satisfied, they will advise you and the seller to close the home. Home closing is done in an escrow agent’s office and a real estate attorney will handle the paperwork and answer any questions that you may have to help you close your home with much ease. Once, everything is certified, you will complete the final payment and receive house keys to become a proud new homeowner.
What does a real estate offer contain?
A basic property purchase offer should have the following essential details;
- Property address
- Buyer’s name
- Seller’s name
- Offer price
- Earnest money amount
- Identification of title company or closing attorney (where applicable)
- Credits, if you are requesting them as part of the offer
- Offer expiration date and time
- Proposed closing date
Published on 2021-02-19 23:27:54