Making an Offer
Making an offer on a home is a critical step in the home buying process. This section covers offer strategies, negotiating price and terms, and understanding contingencies.
Offer Strategies
Making a competitive offer depends on the current market conditions. In a buyer’s market, where there are more homes for sale than buyers, you might have more room to negotiate. In a seller’s market, where there are more buyers than available homes, you may need to act quickly and offer closer to the asking price.
Understanding Market Conditions: Research the local real estate market to determine if it’s a buyer’s or seller’s market.
Making a Competitive Offer: Offer a fair price based on comparable home sales and market trends.
Being Flexible: Be open to negotiating terms and contingencies to make your offer more attractive.
Negotiating Price and Terms
Negotiation is a key part of the home buying process. Don’t be afraid to negotiate the price and terms of the sale. Common negotiation points include the sale price, closing costs, and any repairs that need to be made before closing.
Negotiating Price: Offer a price that reflects the home’s value and market conditions.
Closing Costs: Negotiate who will pay the closing costs, and explore options for seller concessions.
Repairs and Improvements: Request necessary repairs or ask for a credit to cover the cost of future improvements.
Contingencies
Contingencies are conditions that must be met for the sale to proceed. Common contingencies include the home passing an inspection, the appraisal matching the loan amount, and the buyer securing financing. Including contingencies in your offer can protect you from potential issues down the line.
Home Inspection Contingency: Allows the buyer to back out if significant issues are found during the inspection.
Appraisal Contingency: Ensures the home is valued at or above the purchase price.
Financing Contingency: Protects the buyer if they are unable to secure a mortgage.
PREV: Finding the Right Home
NEXT: Closing the Deal