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Do you know How to make an offer on a house, well that’s what we’re talking about today, starting right now.
Hi everyone! Welcome back to my channel, I’m Stephanie Garner-REALTOR® with Fathom Realty, so you want to know How to make an offer on a house, I have some tips for you that will hopefully make your life easier.
Tip #1-Make an offer as quickly as you can, often times, you’re the not the only one looking at this house and if you really want the house, you don’t want to end up kicking yourself later.
Tip #2 Begin with a starting price, ideally it should be a strong starting point.
There are several factors that go into the number you start with when making an offer on a house: your budget-set a limit that you do not go over or go with the limit you are prequalified for., the current market value, the seller’s situation, how long has the house been on the market, the condition of the house, etc. It’s your agent’s job to know the local market, your needs, comps to find out what similar houses have sold for to help you come up with a place to start on price. If it’s a multiple offer situation you would want to offer a competitive offer, you may want to offer list price or over the list price. Feel free to ask lots of questions and do your own research and lean on your agent’s expertise.
Tip #3 Setting your contingencies and other offer details.
Contingencies are conditions in the offer letter that the seller should agree to if they accept your offer and want the deal to proceed.
So, Standard contingencies would include home inspections, appraisals, obtaining financing within a specified time These protect you by allowing you to renegotiate or as the case may be, walk away or renegotiate your offer if the house has hidden issues or isn’t worth as much as you thought.
Going light on contingencies in your offer is going to be more appealing to the seller. For example, You can also include non-financial things to sweeten the deal. You could agree to a closing date that suits your seller if their looking for a quick sale. If you know they are house hunting themselves, you could offer to rent the home to them after you close so they can take their time moving out. Which is pretty common. You could also waive or pay for certain closing costs to appeal to the seller. Maybe don’t ask for buyers expenses, a home warranty or any personal items in the house. Your agent can recommend what items to include.
Tip #4 How much earnest money are you putting down?
Your sales contract will include how much money you’re putting down as an earnest money deposit. This money shows the seller how you’re serious about your offer because if you walk away from the deal in any way not allowed by your contract, the seller keeps the money. In a competitive market, offering a bigger earnest money deposit than the competition can help your offer stand out.
Earnest money deposits are generally 1 to 3 % of the purchase price of the house. If your offer is accepted, you’ll put your deposit in an escrow account, If all goes well, your deposit will often be deducted from what you owe the seller when closing on the house.
Sellers are going to consider each offer with favor with the highest net offer for them, who has the best financing, cash offers is always the strongest because it’s not dependent on an appraisal or on the buyer’s ability to get a loan.
Tip #5 Consider including a house offer letter.
One way to make yours stand out is with a house offer letter. If you know the seller has an emotional attachment to the home and you think they’d appreciate knowing how much you love their home, go ahead and tell them in a letter that will be delivered with your offer.
Now you’re ready to Send your offer.
Your agent will deliver the offer to the seller’s real estate agent. Depending on how the seller responds, your real estate agent will advise what to do next. Good luck!
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