After weeks, perhaps months, of house-hunting, you found your dream home. Now comes the time to make an offer – one that the seller cannot refuse. Facing fierce competition in today’s market, making an offer, especially for first-time buyers, can be fraught with stress and uncertainty.
Tips on Making an Offer
Work with an Agent
An experienced, professional realtor will provide you with market expertise as well as negotiation expertise. Negotiation skills are critical at this time and your agent is there to make sure you are educated and protected throughout the process. A good rule of thumb is that the more competitive the market, the closer to the asking price you should be. Your agent will help you determine a starting price.
Set Contingencies and Other Offer Details
According to Trulia, contingencies are things you expect to happen between the signing of the purchase agreement and closing that could change or end your contract. Standard contingencies include home inspections and appraisals. These contingencies protect you by allowing you to walk away or renegotiate your offer if the house has hidden issues or is not worth as much as you thought.
Figure Out How Much Money to Put in Escrow
The purchase agreement will include how much money you are putting down as an earnest money deposit. It shows the seller you are serious about your offer because, if you walked away in any way not allowed by the agreement, you forfeit your deposit. Again, in reference to the current competitive market, offering a larger earnest money deposit than the competition can help your offer stand out.
Deliver Your Offer
When the time comes, have your agent deliver the offer to the seller or to his agent. The ball is now in their court and it is up to them to respond. Fingers are crossed your offer is accepted and if it is, your next step is to go under contract and start the closing process. Should your offer not be accepted, do not be discouraged and do not shy away from an offer on another house because you think you will lose out again.
Bottom Line: Buyers need an agent who can explain each step of the buying process. It’s a benefit that in the end will save your money and give you peace of mind!
St. Petersburg Communities: If you’re interested in any of these of communities or live in one and are thinking of selling, give the Mesimer Team a call.
Greater Pinellas Point
Historic Old Northeast
Historic Roser Park
Isla del Sol