Submitting the offer
At this time, you’ll decide how much you are willing to pay for the home you want to buy. In some instances, you may want to put in an offer at a lower amount than the asking price. In other instances, you may need to offer more, depending on the demand for housing in your area. Your real estate agent’s expertise will help you make the best decisions. Here’s what goes into putting in an offer on a home.
How your real estate agent helps
As you make your offer, your real estate agent will help you determine an amount, but in the end, the decision of how much to offer is all yours. Your agent will show you the prices of homes sold within the area and how high the demand is for them. If demand is very high and multiple buyers show interest in the same home, your agent may suggest that you write a letter to the seller explaining why you love the home. They may also suggest being flexible with the process, such as the closing date?.
What to consider
First, make sure the home purchase price? is within your budget, even if you submit an offer for less. The seller could either counteroffer or stand firm on the listed price. On the other hand, don’t assume you have to offer your pre-approved? or pre-qualified? amount. You can offer less. If you expect to make any renovations to update the home, you will want to factor in those future costs when you put in your home purchase offer. Do the windows need to be replaced? Is the HVAC system outdated? Does the house need a new roof? These are all things to consider. Also, make sure to avoid offers that are too low. It could cause you to lose the home you want. You’ll also need to consider if your offer is contingent. That refers to other needs and conditions that must occur for you to move forward with the purchase of the home. This could include results from the home inspection, the appraisal?, or your home loan getting approved.
If you expect to make any renovations to update the home, you will want to factor in those future costs when you put in your home purchase offer.
Presenting the offer
Your real estate agent will prepare a sales contract that details the terms of the offer and present it to the selling agent. Your agent will talk to the selling agent who will then discuss the offer with the seller.
The seller will go through the terms of your offer and the price to determine if they accept, decline, or want to negotiate.
If they choose to negotiate, the seller will need to decide the price and terms they want, and their agent will tell your agent.
Repeat until agreement
This process repeats itself until both you and the seller come to an agreement. The offer is not binding until all parties sign it and it’s delivered to you, the buyer. At that point, it becomes a ratified sales contract.