If you’ve made the journey of purchasing a home before, you know that it can feel exciting, stressful, relieving, frustrating, joyful, dreamy, and oh so many other emotions. If you’ve done it before and are searching the internet for tips on how to do it better this time around, or if you’re hoping to make your first home-buying experience as successful as possible, this is a great article to help you close the deal favorably.
The most important thing you need to keep in mind is the price. The home you’ve got your eye on may be in your price range, but you should check it’s worth just to be sure you’re getting the best bang for your buck. Your realtor can help you do this. Check with comparable homes in the area, what did they recently sell for or what are they currently listed at? Is the home you are looking at in a similar price range? Homeowners can be very attached to their homes or may have recently made major upgrades and are hoping to get top dollar in the sale, but home appraisers consider more than what the homeowner may have done or how they feel. They also consider other recent sales of similar homes and the current market to set a price. If an appraisal hasn’t been done yet, your mortgage lender will want one to ensure the price of the home is not more than the appraised value of the home.
Your realtor or a home appraiser can help you determine if the home is listed over price (and there is room to negotiate) or if the home is under valued in hopes of a faster sale (in which case, you may be encouraged to take the deal if it is the home you truly want).
Time On The Market
Keep in mind how long the house has been on the market, too. The average length of time for a house to be on the market is 100 days. Any time after that, the sellers may be getting antsy to sell and provide you with more room to negotiate on the price or other aspects of closing. On the other hand, don’t expect to be able to “lowball” on a home that has just been listed.
Making An Offer
Your realtor will help guide you through making a fair offer to the seller. If the price or time on the market have affected the situation, you may have room to offer less than the home is listed for. Other things to consider are asking for repairs to be made or having the seller handle both yours and their closing costs. In other situations, you may be getting a great deal on the house because of the current market and offering the current asking price and paying for your closing costs is a fair offer.
When you make your offer, your realtor will contact the seller’s realtor and provide your written offer. Their realtor will then turn around and share it with the seller. The seller then gets to decide whether to accept, reject, or counter your offer. Be careful when making your offer; offering too low, could offend the seller and not only may they reject it but they may not consider a second offer from you.
Some homes may be desirable to several possible buyers. If multiple buyers decide to make an offer, the seller is allowed to select the best offer or get into a “bidding war” so to speak and tell all parties to resubmit the highest offer they are willing to provide – and then choose the best offer. This happens when the real estate market is considered to be a sellers’ market; there are many home buyers and not enough properties to satisfy the need, which drives up the value or sale price of a home.
Most importantly, don’t get your hopes up too high. Someone who is selling a home may have priorities that may not necessarily line up with yours. Don’t expect that just because you made a great offer on the house that you’ll automatically get it. Keep your cool, don’t get overwhelmed with emotion that you can’t see the realistic outcome. When in doubt, trust in your realtor – they want to help you get your new home just as much as you do! It’s what they do!