How to Bid on a Home
Buying a house is no doubt one of the hardest things you do, and one of the most difficult steps in this strenuous, time consuming task is putting a winning bid on a home you want to buy after months of searching. If you have also found your dream home and are gearing up to make the purchase, here are a few steps that can make your offer really stand out in a bidding war.
Hire a good real estate agent
This will benefit you in many ways. It is very important to have the services of a qualified realtor, who is also easy to work with. How hard your agent works to present your offer will have an effect on how it is received.
Real Estate Purchase Contract
Your agent has much more knowledge of the housing market than you and he/she can better estimate the price you should offer for a particular house. Once you have decided the price to offer, fill out a Real Estate Purchase Contract offer. You can make your offer with or without conditions. Some common conditions that are usually mentioned in a Property Purchase Contract include, “subject to home inspection”, “subject to financial approval”, or “subject to sale of your existing home”. Your agent will then present your offer to the seller or his Realtor, who can then accept or reject it.
Counter-offers
If the seller turns down your offer, you will be closed out. Besides accepting or rejecting your offer, the seller can also make counter offers. In this case the seller will make a few changes to the terms and conditions and this time the buyer will have the right to accept or reject the counter-offer. In the counter offer, the seller usually changes the offered price, closing date or the conditions. The buyer and seller will go on making counter offers until they reach an agreement or one party rejects the counter offer made by the other, be it a seller or a buyer.
Deposits
Once the buyer and seller agree on the price and other terms and conditions, and the offer is finally accepted, the former is expected to make a deposit to the latter as a sign of intention to buy the house. The amount paid by the buyer as deposit is applied against the total price of the property once the deal is closed. Seek your Realtor’s help to determine a suitable amount to offer as a deposit.
The Final Steps
After making the deposit, get the house inspected by a professional surveyor to know the actual condition of the house. Meanwhile, finalize your mortgage and purchase homeowner’s insurance. You should also hire the services of a legal advisor to assist you in the final stages of the transaction, where the title will be conveyed from the seller to you.
Once everything is done, the sale is closed and the home becomes yours.
