After completing your research, you will be ready to make an offer on your first home. You will have to visit your real estate agent to sign a formal agreement that will outline your offer and for how long you will be making this offer. Most agreements will give sellers three days to a week to consider the offer.
In this time, the offer may be accepted, rejected, or a counter offer will be made. You will have to decide what you will want to do next if the offer is rejected or another offer is made. If the offer is accepted, then you will have to contact your lender, a home inspector, and make arrangements for your move.
Most homes will go to closing within a month after an offer has been accepted. This may seem like a long time, but it is not. You will have plenty to do in the meantime.
Low Or High Offers
Hopefully, by researching the neighborhood, the property, and the value of the home, you will be able to come as close to the seller’s price as possible. Sometimes, though, this is not possible. There may be circumstances that may prohibit you from making an offer that is close to the selling price.
Low offers are usually the result of the selling price being too high, ignorance of the buyer, or the buyer not having enough money to pay that asking price. Whatever the reasons, you should be careful when giving a low offer to a homeowner.
If you have specific reasons for offering a lower price, they should be mentioned in the offer so that the homeowner has a better understanding of how you came to the price offered. In some cases, the seller may offer a counteroffer, which you can either accept or reject. But if the homeowner feels insulted by the lower offer, they may just reject the offer and move on to another.
The only time you should make an offer that is higher than the asking price is if other offers have been made. While this could be the beginning of a bidding war, if you offer just a little more than the highest bid, you may win. You should only do this if the property is worth it and you will be living in it for a long time.
If you make an offer that is high, then you will not leave any room for negotiation. Depending on the homeowner’s circumstances, they may have been willing to go a little lower in order to sell the home. But since you made an offer that was higher than the asking price, you will end up paying more than you should have.
Many times, first time home owners make the mistake of wanting a home so badly that they are willing to pay a few thousand more than the home is worth. This is money that could be used for a down payment.
Making The Right Offer
The closer you can come to the asking price, the better off you will be. Once the home inspection is complete, the homeowners may have to come down in price anyway because of the repairs they will have to make.
Making the right decisions when buying a home are not always made quickly. You should play by the rules and just see what happens. If you get into a bidding war and cannot bid any higher, then it is best to let the home go and find another. You should not be a slave to your first home by buying one that is over your budget. There are many homes available if you keep looking.