Buying a home is one of the most important investments one makes in a lifetime. Using the internet, you can search for homes available in your desired location and do comprehensive research. Deciding how to make an offer is an important decision to help you become a homeowner. Luckily, you have a wide range of options to choose from, such as down payments, contingencies, escrow accounts, etc. However, you should carefully choose one after doing a comprehensive research. Here’s a helpful guide on the topic.

Learn How The Complete Process Work?

Before you prepare your offer for buying a home, make sure you understand how the home offer process works and what to expect. Here’s how it goes-

Your real estate agent sends an offer to the seller. It’s up to the seller to accept or decline your offer. Usually, your offer is rejected when the seller is expecting more. The next step is counter-offer— the seller gives you other terms.

After you receive the counter-offer from the seller, you may accept or reject it. Additionally, you can make your counter-offer and send back to the seller. In your offer, you can negotiate the terms to reach an agreement. In case, one of the parties disagree with each other’s terms, the process stops.

If the offer (or counter-offer) is accepted, you need to sign the purchase agreement. This means you are under contract, and this period is known as the contingency period. In this period, any inspections, appraisals, etc. related to your purchase take place.

Pick a Starting Price

When buying a home, there is a wide range of things going into your mind. Same goes in the seller’s mind. You should be very careful when picking a starting price – it shouldn’t exceed your budget or should not be very cheap that the seller walks away. So, always seek professional help to make the right offer.

When making an offer on a house, you should consider a wide range of factors such as budget, market value, condition, seller’s situation, etc. Before deciding any starting price, do comprehensive research on the property and also know your needs. Feel free to ask questions from your real estate agent to make the right decision.

Set Contingencies

Contingencies are events and circumstances that are going to happen between the time of signing a purchase agreement and closing the contract between two parties. Home inspections and appraisals are the standard contingencies. Why they are necessary? They help protect the renegotiation of the offer and get what you expect. For example, you agreed to buy a house from a seller for $x. The benefit of contingencies is that the seller can’t change the amount to $y.

Based on the seller’s situation, you can set contingencies. If your seller is moving to a new location, you can request them to close the contract quickly. In case your seller is searching for a rental apartment or home themselves, you can rent them after you become the owner. Always rember to get the whole house checked before you put in an offer. Call emergency plumber in Sutton Coldfield to check the house for you if required. If you aren’t good at this, ask for the agent’s help. By analyzing the seller’s situation and your needs, the agent can suggest you the right terms to include.

Earnest Money Deposit

Making an earnest money deposit to the seller tells that you’re serious about buying their home. It also tells that if for any reason you walk away from the contract, the seller has the right to keep that deposit. If you offer a bigger earnest money, it will help your offer stand out in the competitive market. How much is the earnest money deposit? It’s usually 1-3% of the total amount of the house. 

After your offer is accepted, you can deposit the earnest money in an escrow account, a special account, which no party can access until the agreement is over. Usually, your deposit is deducted when closing the contract.

Don’t Forget House Offer Letter

The real estate market is highly competitive, and sellers receive a lot of offers every day. How could you make your offer stand out? One way is to include a house offer letter. If the seller has lived in the house, they might have a lot of memories in it. So, you should appreciate it and show your love towards it. You can write a few words about that beautiful garden or entry of the house. Why so? Because everyone likes getting compliments, and this will definitely make a great difference.

Sending Offer

After your offer is ready, have your real estate agent deliver it to the seller’s agent. Now, your job is finished. It’s up to them to respond. 

In conclusion, making an offer is an important decision in the process of buying a house. It’s important to do comprehensive research about the local real estate market and consider various factors such as analyzing your needs, seller’s situation, etc. For any professional help related to preparing an offer for a house you are interested in buying, talk to your real estate agent.