How to Make an Offer on a House
It is finally that time… the time when you are ready to make the largest investment of your life.
Maybe you have spent weeks, months, even years looking for your first home to purchase. Or maybe you have been thinking about upgrading for a long time and you just finally found that perfect house in which you can picture your family living for years to come. Either way, it is an exciting time!
But also stressful. Deciding how much to offer on a home with the realization that you will be committing hundreds of thousands of dollars to an investment is an intimidating process.
On one hand, you do not want to make too low an offer so that you get rejected by the seller or out-bid by another buyer. On the other hand, you do not want to offer too much so that you lose your own money. It gets even more stressful in a market like the current one where the supply is too short to meet the demand, and prospective buyers are entering bidding wars.
Here’s what you need to know to feel confident in making an offer on a house.
Knowledge is power
Perhaps the most important thing you can know when making an offer on a house is that you actually want to live there. When shopping for houses, it is easy to become enamored with certain features of a house, but not the whole property itself.
It is also easy to get frustrated with the search process and decide to settle for something. This is the biggest investment you will ever make. Stay patient, and take the time to find a home, not just a nice house.
Once you feel this way, you need to know everything you can about the house. How long has it been on the market? How many offers are there currently? When does the seller plan to stop taking offers and review all of them? Have you had the home inspected already, or are you going to make an offer pending an inspection? Why is the seller moving in the first place?
You also need to know the market. If you are using a realtor, they should be able to pull data for you on comparable homes in the area that have sold recently or are pending sale. You need to know the market rates and trends in order to make a good offer.
Working with a lender
Are you pre-approved? Yes? Good for you. But that is not all that matters when you are considering making an offer.
You will want to include a pre-approval letter with your offer so that the seller can be confident that when they accept your offer, the transaction will actually go through.
You will also want an update on the current mortgage rates and financing options. It may have been several weeks or months since you were pre-approved, and there might be a better financing option available to you than what you were originally planning on. And mortgage rates change daily, so you should know what you are getting into.
Be sure and let your lender know before you make an offer. Surprising someone who is loaning you hundreds of thousands of dollars is not the best idea.
If you're looking to sell your home or looking to buy a home, Contact Reno Sparks Tahoe Homes today!! We're here to help you with accurate local information and strong knowledge of our real estate market from all MLS Listings and New Construction