After the tiring process of short listing properties and arranging viewings, if you have finally found your dream home, you will need to make an offer to secure the purchase. However, it is important that you consider the property and the asking price very carefully before committing to anything. It is natural to want to jump into the deal after finding the house of your dreams, but a hasty decision may lead to regret later on.
Firstly, you need to make sure you are in a strong position to negotiate. If you are a first time buyer or have a mortgage already lined up, you will automatically get preference over other buyers. If you don’t have a mortgage yet, you should contact a bank or a mortgage broker and secure one. The lender should give you a Mortgage in Principle agreement, which you will show a seller to prove that you are a serious buyer.
Furthermore, you should set a maximum limit for yourself and stick to it. Having made all the arrangements on your end, you will be in a favorable position, especially with sellers who are in a hurry to sell their property. However, sellers who have no time constraints are hard to budge. Nevertheless, if you face an asking price which is higher than the limit you have set, you should take your time and consider whether the property is really worth going over your limit.
It is also recommended that you compare housing prices in the locality and make note of the average trend. You should also have the value of your desired property researched independently through a real estate agent in order to assess the security of your investment. It is important that you thoroughly inspect the property and observe any repair work which needs to be carried out and discuss the implications of it with the seller. If the seller is particularly stubborn, you might want to back off, since persistence on your part will actually show the seller that you are desperate.
Once you have made an offer and it is accepted by the seller, you will want the property to be taken off the market to cut off other potential buyers. Then you will be required to fill out all the paperwork and finalize the mortgage with all the details and particulars. The lender will then have the property evaluated before allowing you to formally borrow money on it.