Buying a Home 101 series – Week 7

Welcome to Week 7 of our Buying a Home 101 series! In this part of our step-by-step guide, we’ll dive into making an offer on a home—an essential part of the process that requires careful planning. This series covers everything from finding a buyer’s agent to settlement day, giving first-time buyers all the insights they need to navigate their journey. If you’re gearing up to buy, stay tuned for all the important steps!

You’ve found a home you want to buy—congratulations! Now comes the critical step of making an offer on a home. But don’t rush; setting the right offer price and earnest money deposit can give you an edge while keeping you within budget.

Step 1: Evaluate the Home and Determine an Offer Price

Making an offer on a home starts with evaluating its market value. Here’s how:

• Work with your agent to assess a competitive price based on the current market.
• Don’t just accept the asking price; homes can be over- or underpriced. Use comps of similar properties in the neighborhood to validate your offer.
• Look closely at features of the home compared to recently sold ones and adjust for added or missing amenities.
• Consider variables like how long the home has been on the market and the demand in the area, and ask about any competing bids.
• Decide on your “walk-away” price and stay firm on it to avoid buyer’s remorse!

Step 2: Make an Offer and Prepare to Negotiate

When making an offer on a home, it’s essential to back it up with data:

• If your offer is below asking, justify it with comps or potential issues that may affect the home’s value.
• Keep your offer simple with minimal stipulations; this can make your bid more attractive to sellers.
• Be prepared to accommodate any of the seller’s requests, like a rent-back option, which can make your offer more appealing.
• Be courteous! Sellers sometimes choose buyers for personal reasons, so it can help to write a “love” letter explaining why you’re the right fit.

Step 3: Demonstrate You’re a Serious Buyer

Show your commitment by being prepared when making an offer on a home:

• Include your pre-approval letter and be ready to put down a significant earnest money deposit.
• This earnest deposit is a signal of your interest. Aim for 1-5% to show the seller you’re serious.
• Tailor your offer based on the situation—whether the property is new on the market with multiple bids or has been listed for a while with no offers.

With these steps in mind, making an offer on a home can be a smooth process, helping you secure your new property at the best price possible. Just a few more steps, and you’ll be holding the keys to your new home!

Jdanielrealestate.com