You have read all about first time home buyer education topics, found an experienced realtor, are pre-qualified, and found a house within your budget that suits your family's needs. You may feel like the hard part is behind you.
Now you have to tackle the process of making an offer.
While this sounds simple and straightforward, there are several key actions that play into correctly executing a real estate offer and beating out other potential buyers. You should answer these questions for yourself before moving forward with putting in an offer.
How hot is the area you are buying in? Rapidly moving real estate areas force buyers to move quickly or risk losing the deal. If your dream house is in a hot area, time is a factor. A sleepier area affords you more thinking time.
How much are you willing to pay? Study the asking price and determine how much you want to offer. Your realtor can guide you, but it comes down to how badly you want the property. When the area is prime, consider offering the asking price in order to compete with the other offers that are surely coming that way. Additionally, if you think you have some bargaining leverage, put in an offer lower than asking and see if you can strike a deal.
What information is contingent on you buying the home? You obviously don't need to sell your home as a first time homebuyer, but what about the physical inspection and the appraisal? Pinpoint the information you feel would decrease your interest in the home, and specify these in the purchasing contract. If they occur, you have an out.
When do you want to close? The seller may still need to find a house to buy, or they may already have one. Include in the offer the timeframe in which you wish to close. Buying quickly often motivates sellers to take your offer over others.
Which points are you willing to negotiate? Contemplate the areas you will give leeway to the seller in order to get the home. Will you accept a counter offer? Will you walk if they don't replace the carpet? Setting your deal breakers beforehand reduces the chance of making wrong decisions in the heat of the negotiating process.
First time home buyer education is crucial to ending up with the right house for you, and this extends to making the offer. Set your perimeters up front, know how much you are comfortable offering, and stick to your guns. Following these tips increases the chance of you walking away as a happy home owner! For additional first time home buyer information, download this eBook now!