Your purchase offer can be considered a “blueprint for the final sale” of a home. It contains all of the items that will serve as a guide to the final agreement, including things such as the purchase price offered, the down payment, the loan amount, the deposit, and contingencies.
If the seller agrees to almost everything and wants to further negotiate a term, you will most likely receive a written counteroffer with the changes the seller prefers. You are then free to make changes in your own counteroffer. Each time either party makes any change in the terms, the other side is free to accept or reject it, or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.
There are some things that you should focus on when creating your offer. As a buyer, you should understand with great confidence what comparable properties in the area are selling for. Take the time to compare the price and quality of other homes with the one you may potentially purchase. Also, learn everything you can about the property. How long has it been on the market? Has the price been reduced before?
When bidding on a home, consider the fact that the closer you are to offering full asking price, the more likely you are to have the opportunity to improve your terms. As a buyer, there are many reasonable requests you can make such as the seller’s contribution to closing costs, providing a home warranty, among others.
Once you have decided on an offer price and terms you would like to request, consider adding contingencies. If your offer includes the phrase “this offer is contingent upon a certain event,” you are telling the seller that you will only go through with the purchase if that specified event occurs. For example, “The buyer obtaining specific financing from a lending institution. If the loan can’t be found, the buyer won’t be bound by the contract.” This can be agreed upon immediately by the seller or can come back in a counteroffer with newly stated contingencies.
When it comes to making an offer on a home and negotiating the best deal, take the time to do your research. Understand as much as you can about the home and its past, the neighborhood, and the seller’s motives. Consider what terms you are truly looking for and what is most important to you, and make sure that you feel confident in your offer. Of course, being pre-approved for the loan before you make an offer is always your best. Call me today to talk about your home loan! I will make the process easy for you.Tags: First Time Homebuyer, Homebuying