| You've decided to buy a house. You've set your | | | | make your initial bid more attractive to a seller. |
| budget. You've browsed home listings online and | | | | 2. Consider your price point and start the bidding |
| attended more open houses than you can count. Now | | | | process with an offer that gives you room to |
| you've finally narrowed your search down to one | | | | negotiate. The goal is to stay within your budget even |
| home in particular. Now what? | | | | after negotiations have been made, so keep that in |
| Once you've found the home of your dreams, bidding | | | | mind when making your initial offer. |
| on a house can be a straightforward process. | | | | 3. Offer a larger down payment. A larger deposit or |
| However, you should make sure you understand a | | | | down payment indicates that you're serious about the |
| few key tips before you put an offer down on the | | | | offer you've made. |
| home you intend to buy. | | | | 4. Be willing to be flexible. Whether it's pushing back the |
| Before the bid: | | | | closing date or offering to not move in until it's |
| Before you start bidding for a home, there are three | | | | convenient for the seller, flexibility is always an |
| important steps you should take: | | | | attractive trait in the bidding process. |
| | | | Wait for the decision. |
| 1. Get prequalified for a loan. You should always get | | | | |
| prequalified for a home mortgage loan before you put | | | | 1. Once you've submitted your initial bid, it's a waiting |
| an offer on a house. Whether you are borrowing from | | | | game unless you specify a deadline for a response. |
| a bank, a credit union or another institution, getting | | | | Often an answer of some sort will come within a few |
| preapproved for a loan informs you of roughly how | | | | business days, but could also come in a few hours. |
| much you can potentially borrow and comfortably | | | | Depending on what seller decides, you may have |
| afford. Also, have all preapproval paperwork in-hand to | | | | another choice to make. Either they will accept your |
| present to the seller with your offer. This will make | | | | first offer, counteroffer or reject it completely. |
| your bid much more attractive. | | | | Receiving a counteroffer is the most common |
| 2. Know your home-buying rights. Before you bid for a | | | | response. In this case, you have three options: |
| house, you should understand all your rights as a home | | | | - Accept their counteroffer. |
| buyer. For example, did you know you can hire your | | | | - Make another offer. |
| own home inspector to come in and take a look | | | | - Reject their counteroffer and move on. |
| around before you make an offer? While an inspection | | | | Re-evaluate if you should counteroffer. |
| is usually required between price negotiations and the | | | | This bid should be somewhere between your initial |
| closing date, you can use this early inspection to help | | | | offer and their counteroffer. You may also want to |
| you decide how much you'd like to offer in your initial | | | | reevaluate the extras at this point. For example, if |
| bid. Although this extra inspection is optional and would | | | | you've asked them to pay closing costs, would you be |
| be an additional charge you would incur, it may be a | | | | willing to drop that request? Or, if they aren't willing to |
| useful tool in the negotiating process. | | | | give you a discount for roof repairs, are you willing to |
| 3. Understand the extras. Did you know that you can | | | | assume those costs? On the flipside, if you are willing |
| negotiate closing costs, escrow periods, points, down | | | | to accept their counteroffer, is there an appliance or |
| payments and which appliances, fixtures and amenities | | | | another amenity that you would like to include as a |
| are included in the deal? All these factors come into | | | | negotiation tool to balance the rise in cost? This |
| play when deciding on the amount you want to offer. | | | | process is a matter of give-and-take, so evaluate how |
| Ready, set...bid: | | | | much you are willing to give in order to get the house |
| Once you have considered all the factors that go into | | | | you want. |
| your initial bid for a house, you're ready to start the | | | | Come to an agreement. |
| process. | | | | Whether the bidding process goes on for one round or |
| | | | ten, eventually you should come to an agreement. |
| 1. Make your initial offer. Consider any additional | | | | When you finally do agree on an offer, you are now |
| concessions you would like the seller to make. Do you | | | | finished bidding. However, the home buying process |
| want them to pay for closing costs? Would you like | | | | doesn't end there. |
| them to leave the washer and dryer? Would you like | | | | Once you settle on a purchase price for the home of |
| them to decrease the asking price due to a roof that | | | | your dreams, you are now ready to move forward |
| needs repair? All these factors play into how much | | | | with inspections, paperwork and settling on a lender |
| you are willing to offer and how much the seller is | | | | that offers the mortgage loans to help you pay less on |
| willing to negotiate. In addition, there are a few ways to | | | | what you borrow. |