Advice on Making an Offer on a House
The home buying process involves stages like browsing through available options, viewing a variety of potential homes, and finally culminates in the aspiring home buyers fixing on the one house they like above all others – then, it’s time to make an offer on the home to the seller.
Making an offer might seem like a straightforward task at first, but the process is riddled with small details that need to be carefully worked out. If you are about to make an offer on a home you like, there is some advice that you should heed when doing so.
Firstly, it is essential to hire a real estate agent. When making an offer, you must always trust the advice of your agent and/or attorney – generally they are far more skilled and knowledgeable in these matters, and can guide you effectively. An agent will guide you through the entire process, from helping you rework the purchase contract to suit your needs, to backing you during the price negotiation process.
The main point around which the entire process of making an offer revolves is the price. Keep in mind that everything is negotiable, and you would not be wrong in naming a price that is below the asking price. Consult with your agent, and to get a clearer idea about the worth of the house you are interested in, request a Comparative Market Analysis (CMA) from your agent. This will present you with a list of comparable houses in the area, which have recently been sold, and give you a good idea about the trends in the market, particularly in your area of choice. You can compare these prices with the asking price of the home you are interested in, in order to gauge its true value, and determine whether the owner might be asking too much. However, if you make an offer that is lower than the asking price, you must justify the decision, otherwise you risk losing the house.
In relation to financial matters, it is also advisable to have been preapproved for a mortgage before you make an offer – this way, your offer has more of a chance of being accepted.
Finally, you should not make a confirmed offer – rather, it is best if you clarify that your offer is contingent on a number of things, such as your ability to obtain a mortgage (if you haven’t already obtained one), and the home inspector’ report. Have a thorough home inspection carried out, to determine the condition of the house – e.g. have the wiring system, the sewerage system, the plumbing, the roof, and all aspects of the house checked, to make sure everything is in order, and nothing major needs to be repaired. In addition, you will also need to have a title check carried out, to determine whether the seller actually has the legal right to pass the title on to you. Along with clarifying the purchase price and contingencies in your offer, you should also sort out which items will be included with the house, so there is no room for any disputes later on.
