Have you finally found the home you’ve been looking for all your life? It can be quite exciting to start signing some papers and making deposits but don’t be too eager to jump in headfirst. Here are five things you should take into consideration before you make an offer on a house so that you’re fully prepared for the entire process.
- Decide How Much To Offer
When looking at new home builders in surprise az, you should be figuring out how much money you’re willing to pay for the property. You should try to stay within your budget but don’t just throw out a random number either. You want to look for a price that is somewhere between the best possible price and a price that doesn’t insult the seller. To get a good idea, look at comparable homes in the area, examine if there need to be any necessary repairs or renovations, and see if there is any other competition for the home by other potential buyers.
- Decide On Contingencies
Contingencies are escape clauses in the sales contract that allow buyers to walk away from a sale with their earnest money. Some of the most common contingency clauses include home inspection, financing, appraisal, and title. If these conditions aren’t fulfilled by the seller, then the buyer is under no obligation to pay.
- Decide How Much Earnest Money To Offer
If you’re not paying with cash, then you’ll have to submit a good faith deposit, also called earnest money. This is similar to a security deposit. It’s usually between 1% and 2% of the total home price. Of course, you can offer more than this to demonstrate to the seller that you’re serious about buying.
- Write A House Offer Letter
You can use a real estate agent, or you can write an offer letter of your own. It should contain the following details:
- Address of the home you want to buy.
- Your name and the name of anyone else who will be on the house title with you, like a spouse.
- Amount of money you want to offer for the home.
- Any contingencies the home needs to meet before the sale goes through.
- Any concessions you’re asking from the seller.
- Items you want included in the sale.
- Earnest money deposit amount.
- Your mortgage approval letter so the seller knows you can fund the purchase.
- The date you expect to close on your loan.
- The date you want to move into the home.
- The deadline to respond to your offer.
- Negotiating The Price And Terms Of Sale
There are three things that can happen when they receive your offer.
- Accepts the offer: you’re ready to go forward with your mortgage lender and continue with the purchase process.
- Makes a counteroffer: you can continue to negotiate terms back and forth until you can both agree on what they should be. You can do this alone or with a real estate agent.
- Rejects your offer: this can leave you feeling disappointed, but there are plenty of other houses for sale.
If you’re looking for a new home, be sure to contact your nearest real estate agent to help you find the home of your dreams. They might be able to help you find exactly what you’re looking for.
