Since there are a lot of first time buyers in this market, I want you to be prepared. So here is my take on how to offer on a home. When someone decides to buy a house, 9 times out of 10 they don’t know entirely what they’re getting into. Good news, I’ve got your back. My goal for my clients is to make one offer, on one house, and open one escrow. Of course this can’t always happen, especially in a Seller’s market, but what I can do is prepare my clients so we can send out our strongest possible offer.
In order to make an offer on a home, you must have a pre-approval. This isn’t written in a contract or even in the rules of Real Estate, but in a sizzling Seller’s Market, it’s a must have to complete a strong offer.
✔ Understand the Contract
Next, make sure you understand the contract you sign. Never sign something you don’t understand, or worse, that you haven’t read! The Residential Purchase Agreement has time frames and dollar amounts that you’ll want to ensure you can in fact fulfill, including the purchase price! The contract has default terms, conditions, and contingency time frames but those will oftentimes be customized to each house based on the needs of the Seller in order to make the offer as enticing as possible. Although, it’s super important to find a balance between making an offer extremely appealing and protecting yourself against any potential issues down the road.
✔ Choose a Price
This is what every deal revolves around. Generally, home buyers ask their Realtor for advice on what price they should offer on any given home. For any homes my clients want to offer on, I do a fully adjusted market analysis of the home (my version of an appraisal). This allows my clients and I to have a very good idea of the appraised value; from there we also factor in Seller motivation, days on market and the overall activity level of the house and come up with a fair price to offer. Each house and client is different, so this may vary slightly from person to person to best accommodate them and secure their perfect home.
✔ Seal the Deal
This is the last step to making an offer on a house. Once we have come up with a strong, enticing offer that you’re happy with, I send it out to the Listing Agent. You have the right to rescind your offer for any reason up until acceptance. If you receive a counter offer back and you have either changed your mind or don’t like their terms, you are not bound to the agreement and can walk away. Assuming there are no unforeseen issues, once a signed contract is in hand, you are about 30 days away from being an official homeowner!