The Home Buying Process - Part 2

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Real Estate

Buying a home can seem like a big process, with so many steps and details to attend to. As a real estate agent, I want to make sure you are prepared to take those steps so I've created a three part series about the home buying process.

 

The Home Buying Process - Part 2:

The Offer

Now that you've found the home you'd like to call your own, it's time to make an offer! Many properties on the market will receive multiple offers so it's important to make sure that your offer stands out from the rest. The offer is presented to the seller's agent as the purchase contract. It includes the price you're willing to pay for the property, and any items that you'd like to be included or excluded from the sale; things like air conditioning units or a hot tub that is currently on the back patio. The offer will also include the buyer's request for steps that the seller would take before the contract is completed, like carpet cleaning, pest inspections, and repairs.

 How do you know how much to offer?

In addition to the market value of the home, you'll also want to consider how long the home has been on the market and if the price has changed since it was first listed. You will also want to look at the current market's list to sale price ratios. If this sounds like a lot, don't worry, your real estate agent has all that info at their disposal! 

Your agent will be glad to provide you with a comparable market analysis, to help you to determine the value of other similar properties in the area. We can get you the information about the list to sale price, and all the historical data about the home's listing price and time on the market. We'll also help with the negotiation part of the offer, to ensure that you're getting the best value possible. If you need any assistance in this step, contact an agent

What makes an offer competitive?

To make sure your offer is taken seriously by the seller, it has to be competitive. A competitive offer is one that shows the seller that you are ready, willing, and able to buy their home, and to do so with as few contingencies as possible. Being pre-approved for the mortgage is an excellent way to show your seller that you are a serious buyer. Flexibility on your move in dates is also a bonus for many sellers. Sellers are just as ready to sell as you are to buy, so meeting them on their level is key to your success! Your agent will help to make sure your offer is as competitive as possible. 

What happens if the seller doesn't accept my offer?

When a buyer's agent presents a contract to the seller's agent, one of three things will happen: it'll be accepted, rejected, or a counter offer will be made.

A counter offer is common in real estate transactions. It means that the seller is interested in the offer, but wants terms to be different than what you presented to them. For example, in your purchase contract you offer the full listing price, but also ask for them to paint the master bedroom. The seller is happy with your full price offer, but doesn't want to paint the room, so they make a counter offer. This gives you and your agent the opportunity to re-negotiate and try again with your offer. For example, you and your agent may counter the seller's counter offer, possibly making a small change to the price, but removing the request to paint the room. Then your agent will present your counter offer to the seller's agent again, at which point it'll be accepted, countered, or rejected. Your agent will support you throughout the process; we have all the resources we need to make your offer as strong as it can be!

If your seller accepts your offer, it's time to start the escrow process. We'll look at the escrow and closing process in part three