5 Tips for How to Make an Educated Offer on a House

Posted July 6, 2019 by in Lifestyle
how to make an educated offer on a house

    

Looking for a home is a great experience. You get to walk into an open house and imagine you and your family watching movies and TV shows in the living room or cooking in the kitchen. Problem is, there is one hurdle you have to jump if you want to actualize the dream above. 

That is, you cannot buy your dream before making an offer. Wondering how to make an educated offer on a house? Worry no more! Here are 5 tips for how to make an educated offer on a house:

  1. Conduct Your Own Research

Want to learn how to make an educated offer on a house? The first step before making your offer is to conduct your own research. For starters, what is the status of the local housing market? What is the seller’s situation?  What is the condition of the house? By finding the information above, it helps you make an offer on a house.

Also, you can make your work easier by hiring an experienced real estate agent. Ask lots of questions to learn more about the local market to find the best strategy to use when making an educated offer.

  1. Learn About the Basic Home Offer Process

With an experienced real estate agent by your side, you can learn the basic home offer process. Here is how it goes. The first step involves your agent sending an offer to the seller. 

The second step is where the seller makes his or her own choice. He or she can decide to accept, decline or counter offer. Third, if the seller counter-offers, you can choose to accept, decline or counter offer.    

When making this decision, rely on the expertise of your real estate agent. If you accept the offer, you will sign the purchase agreement and enter the contingency period. Find out more about making an offer on a house below asking price in 2019.

  1. Set Your Budget

How much are you willing to spend on your new home? Having a budget provides guidance when you make an offer on a house template. Without a budget, you may end up overpaying which is a loss to you and a win for the seller. 

Before making your budget, there are a few factors to consider. For instance, the sales history of comparable properties nearby, and proximity to your job. Consider neighborhood amenities such as parks, good schools, museums, and art galleries.  

Don’t forget to consider repairs and renovations!

  1. Write a Personal Letter to the Seller

While this is not recommended in every situation, the strategy can help you make an offer on a house. A personal letter to the seller helps to make your offer stand out. 

In the letter, include your offer. Even though your offer may not be the strongest, tugging on the seller’s sentimental attachment to the home can help you win the deal.

  1. Stay Specific to Your Offer

When making your offer, it is important to avoid rounding it off to the nearest thousand or hundred. For instance, if you intend to offer $433, 286, do not round it off to $433,000. Simply offer the value as-is. 

By doing so, the seller will register the higher value ($433,286) and not $433,000. Want to know how to make an offer on a house below asking price?  In a buyer’s market, you can offer below asking price. Simply submit your offer to the seller. If he or she rejects the offer, he will probably make a counteroffer. 

What Next?

Now that you know how to make an educated offer on a house, here is what happens after. Your lender will send a loan estimate. It will outline the fees and costs of your mortgage. Before closing, you will receive a closing disclosure. If the seller rejects your offer, negotiations continue. 

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