Making Your Best Offer on a Home
Some people believe that everything is negotiable and when it comes to buying or selling a home – its true. From the price, to the terms, to the occupancy date- you can always ask for what you want. You may not get everything you want, but it’s always in your best interest to ask!
As a buyer, your purchase offer can be considered a “blueprint for the final sale.” It contains all of the items that will serve as a guide to the final agreement including things such as: the purchase price offered, the down payment, the loan amount, the deposit, and contingencies. If the seller likes almost everything and wants to further negotiate a term, you will most likely receive a written counteroffer, with the changes the seller prefers. You are then free to make changes in your own counteroffer. Each time either party makes any change in the terms, the other side is free to accept or reject it, or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.
There are some things that you should focus on when creating your offer. As a buyer, you should understand with great confidence what comparable properties in the area are selling for. Take the time to compare the price and quality of other homes with the one you may potentially purchase. Also, take the time to learn everything about the property. How long has it been on the market? Has the price been reduced before? Why is the owner selling the house? Receiving answers to these question can help your further understand the sellers motivation and if they wish to sell quickly or if they are in no rush. (For your sake, let’s hope they are highly motivated to sell quickly!)
When considering the price point that you will offer, consider the fact that the closer you are to offering full price, the more likely you are to have the opportunity to improve your terms. As a buyer, there are many reasonable requests you can make such as: the seller’s contribution to closing costs, providing a home warranty, etc. Depending on the motivation of the seller, there are many possibilities when it comes to the terms.
Once you have landed on an offer price and have decided the terms you would like to request, consider adding contingencies. If your offer says, “this offer is contingent upon a certain event,” you are telling the buyer that you will only go through with the purchase if that specified event occurs. For example, “The buyer obtaining specific financing from a lending institution. If the loan can’t be found, the buyer won’t be bound by the contract.” This can be agreed upon immediately by the seller or can come back in a counteroffer with newly stated contingencies.
When it comes to making an offer on a home and negotiating the best deal, take the time to do your research. Understand as much as you can about the home and its past, the neighborhood, and the seller motives. Consider what terms you are truly looking for and what is most important to you and make sure that you feel confident in your offer. Of course, being approved for the loan before you make an offer is always your best bet and that’s where Fairway can help!
With stabilizing home mortgage loan interest rates, right now is one of the best times to consider all of your home buying or selling options. Whether you are buying a new home or looking to refinance your current home, you can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Call one of our four offices today to get started or schedule an appointment with you to really look at your financial plans and help you make the best home loan decision or show you how the path toward ownership. Call us anytime.. We have locations in Matthews, Ballantyne, Lake Norman and Mooresville to make meeting convenient, or simply fill out our online application to get started.