If you are in the market to buy a new home there are a few things that you need to seriously consider in order to get the best deal possible. Making an offer on a home is an exciting and big step. You can feel overwhelmed if you are not exactly sure what you should be expecting. The right home is not just about the price. It’s also about the formal process in which you are going to outline all the terms under which you are willing to buy a property you are interested in.
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Factors that Influence Your Offer
Before you go ahead and make an offer it’s very important that you think about the current housing market, how long the property has actually been on the market and if you have competing buyers out there. Sites like Zillow and Redfin are awesome to help out with this.
Make sure you consider your budget and mortgage approval times. You may also want to do a land survey of the property and most likely a home inspection to find out if there are any hidden issues. Often times this will come during the due diligence period – more on that shortly!
How the Offer Process Works
In most cases you’re going to have to submit an offer in writing. You can do this with your real estate agent. This document is going to include the price you are willing to pay and any conditions that you wish to be stipulated. It will also include the timeline for completing your purchase of the property. Although it may vary, a 30 day close is fairly common with a 1 week due diligence period giving you time to inspect the house.
The seller can either decide to reject, accept or counter your offer. It’s up to them. It’s common for some type of negotiation to take place so that you can reach an agreement that is right for you both.
Having professional help with house purchase contracts at this stage is going to make sure that you fully understand just what you are committing to. Here in the US a realtor is your most likely bet.
Preparing for a Possible Outcomes
It is very important that you know that not all offers will be accepted. Sometimes sellers hold out so that they can get a higher price for the home. Another buyer may come along and have a more appealing offer than you. Don’t be discouraged if this happens. Instead all you have to do is stay patient and try to remember that finding the right property on the right terms is always worth the wait in the long run.
If your offer is accepted you will be able to move on to what is known as a legal stage – the contract will be binding. This is where you will draw up your contracts and do final checks. You’ll go through the due diligence period, make sure any inspections you do are favorable, and you can also potentially renegotiate depending on what you find.
Moving Forward with Confidence
Making an offer on a home is one of the biggest milestones that you can experience if you are seeking to buy a house. By making sure that you are understanding the process and also thinking about your budget, and the market conditions out there you will see the complete picture.
You will be better prepared to navigate the journey of home purchasing. Understanding the process is going to bring you closer to making sure that you are securing a home that is right for you!
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