A first time (or more) homebuyer's guide to navigating the market!
You fell in love with a house, now it's time to make an offer!
Posted 12-22-2011 at 08:35 PM by kimrocktherealtor
After a few times out viewing homes, you found a house you absolutely love and are ready to put an offer in on it. But what do you need to know before doing so? Here's how it will all go down:
1. Comps - Your agent should sit down with you and go over the comps (comparable properties) in the neighborhood. This will encompass both properties currently for sale, as well as properties that have recently sold. By discussing these comparables, you and your agent can come up with the best offer price for this house. There is no "set amount" you should offer, and I do get asked this a lot. If a home is priced low for a quick sale, you may even offer full price! Yet if a home is overpriced and has been sitting for a while, you may end up offering a good deal below their asking price. Their is no simple rule of thumb for this - it all depends on how the price compares to other recent sales in that neighborhood, and your agent will help you with figuring this out.
2. 1st & 2nd Deposit Amounts - When you make your offer on the property, you also need to specify you first and second deposit amounts, as well as give them a check for the first deposit. The higher deposit you give, the more serious you appear to be as a buyer. Your agent will help you with 'standard' amounts for your homes price range, but be prepared to write a check when you write up your offer.
3. Settlement Date - Another thing you will need to decide when writing your offer is when you would like to actually settle on the home. This is the official date you will take ownership of the house. Typical time frame is anywhere from 30-45 days. Of course there are exceptions and situations where someone may need longer. This becomes a negotiation point with the seller, and you may go back and forth coming up with the perfect settlement date for the two of you.
4. Home Inspections - At the time of your offer you will also be letting the sellers know which inspections you plan on doing. A regular home inspection, a termite inspection, radon, testing the water if it's a private well system, etc.. These are all options you have, and you need to decide which you will be doing and let the sellers know. A more detailed blog will follow shortly regarding the home inspection process, as it can be a doozy!
Those are the main things that go into writing your offer. Once this is done, your agent will present your offer and check (along with some other paperwork you will need to fill out) to the listing agent. The listing agent will then present this to their clients (the sellers) and they will get back to you with a reply. They can either accept your offer, counter your offer, or decline. In todays market, more often than not you will end up with a counter offer - your agent and theirs will go back and forth talking to both parties and coming up with an agreeable dollar amount. Once you reach an agreement, both parties will sign off on it and you are officially UNDER CONTRACT!
The next step after your offer is accepted is to apply for your mortgage, and schedule your home inspection. I will discuss those topics with you in my next blog entry - stay tuned!
1. Comps - Your agent should sit down with you and go over the comps (comparable properties) in the neighborhood. This will encompass both properties currently for sale, as well as properties that have recently sold. By discussing these comparables, you and your agent can come up with the best offer price for this house. There is no "set amount" you should offer, and I do get asked this a lot. If a home is priced low for a quick sale, you may even offer full price! Yet if a home is overpriced and has been sitting for a while, you may end up offering a good deal below their asking price. Their is no simple rule of thumb for this - it all depends on how the price compares to other recent sales in that neighborhood, and your agent will help you with figuring this out.
2. 1st & 2nd Deposit Amounts - When you make your offer on the property, you also need to specify you first and second deposit amounts, as well as give them a check for the first deposit. The higher deposit you give, the more serious you appear to be as a buyer. Your agent will help you with 'standard' amounts for your homes price range, but be prepared to write a check when you write up your offer.
3. Settlement Date - Another thing you will need to decide when writing your offer is when you would like to actually settle on the home. This is the official date you will take ownership of the house. Typical time frame is anywhere from 30-45 days. Of course there are exceptions and situations where someone may need longer. This becomes a negotiation point with the seller, and you may go back and forth coming up with the perfect settlement date for the two of you.
4. Home Inspections - At the time of your offer you will also be letting the sellers know which inspections you plan on doing. A regular home inspection, a termite inspection, radon, testing the water if it's a private well system, etc.. These are all options you have, and you need to decide which you will be doing and let the sellers know. A more detailed blog will follow shortly regarding the home inspection process, as it can be a doozy!
Those are the main things that go into writing your offer. Once this is done, your agent will present your offer and check (along with some other paperwork you will need to fill out) to the listing agent. The listing agent will then present this to their clients (the sellers) and they will get back to you with a reply. They can either accept your offer, counter your offer, or decline. In todays market, more often than not you will end up with a counter offer - your agent and theirs will go back and forth talking to both parties and coming up with an agreeable dollar amount. Once you reach an agreement, both parties will sign off on it and you are officially UNDER CONTRACT!
The next step after your offer is accepted is to apply for your mortgage, and schedule your home inspection. I will discuss those topics with you in my next blog entry - stay tuned!
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