2 Considerations When Making an Offer on a Home
Posted on: 17 January 2017
As you begin looking at homes for sale, you will eventually find the one you want to buy. When you do, you will have to make an offer on the house and wait for the seller to accept, reject, or counter your offer. The offer you make will be binding if the seller accepts, and it should include contingencies that protect you. Here are two things to consider when making an offer on the house you want to buy.
The price to offer
How much should you offer on the house? That is the big question you will need to discuss with the agent, and the answer will depend on many things, including the following factors:
- The asking price
- The demand for the house
- The value of the house
- How much you want this particular home
- The work the house needs
Coming up with a good amount to offer can help the seller agree to your offer, or it could turn the seller off. Discussing this with your agent is a necessity, especially if you really want this house. If the seller does not like the price you offer, he or she can reject it or counter it. A counter offer simply states that the seller agrees to the contract, except he or she is asking for a higher amount for the home. You can accept or reject the counteroffer that is made.
The contingencies to add to the contract
When you make an offer on a house, you also have the opportunity to add contingencies to the offer. A contingency is simply a statement that something must occur in order for the contract to be valid. A common contingency added to purchase agreements is one that involves a home inspection. The contingency can state that your offer is valid as long as the home passes the inspection without any major problems being detected.
You might also want to include a contingency related to a certain repair you would like completed before you buy. For example, if the roof has a bad spot on it, you might include a contingency that this must be fixed by the seller in order for the contract to go through.
If you are ready to buy a house and would like to begin looking at homes for sale, you should begin by contacting a lender to get approved for a mortgage, and then you can contact a real-estate agent to help you locate the right house.
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