| Buying a home is an exciting and potentially nerve | | | | When you submit an offer, be prepared to make a |
| racking time. Thankfully preparing an offer is one of the | | | | deposit. The deposit is put toward the amount you've |
| last steps in the home buying process. By this time you | | | | agreed to pay for the home in your offer. If your offer |
| have found a property that suites your needs (and | | | | isn't accepted or the terms aren't met the deposit is |
| hopefully a little more) and you are ready to finalize | | | | returned to you. In most cases people are not in a big |
| everything. If you are comfortable doing this on your | | | | hurry to sell their homes so it is up to you (as the |
| own, great. However it is strongly recommended that | | | | buyer) to make a good impression. It is in your best |
| when you are preparing an offer, you have a real | | | | interest to let the seller know you're serious by:eing |
| estate agent or another certified professional by your | | | | preapproved for a mortgage from a financial institution |
| side. | | | | or another lender. Having the prequalification for the |
| When writing up an offer there are a few points to | | | | home loan at X amount of dollars prepared for when |
| consider such as: How much will you offer for the | | | | you put in your offer will let the other party know |
| home? Do you have any terms or conditions that the | | | | you're not wasting anyone's time. Note: you may want |
| seller must meet? How much money are you willing to | | | | to keep the amount you've been preapproved for |
| put down on good faith (this is called earnest money)? | | | | under wraps until you've come to a decision regarding |
| Let's look at these questions in more depth to make | | | | the amount you're willing to offer; after which time you |
| sure you make the best decision in preparing your | | | | can go to your mortgage lender and get the document |
| offer. | | | | stating you will have no problem with following through |
| How much will you offer for the home? | | | | on your offer to buy. That way the seller never needs |
| Maybe you don't like to negotiate or the seller is asking | | | | to know that you may have been approved for more. |
| a fair price otherwise you have to consider how much | | | | Now after all the work of finding a property that suits |
| you are willing to spend on the purchase of the | | | | you and making that leap to organize and submit your |
| property. If the market is booming you may not have a | | | | offer comes quite possibly the most nerve racking |
| choice however it is rare to pay the asking price. | | | | part if the process. Once your offer is in, the seller will |
| Exception to this rule include: situations where two | | | | have a chance to review your offer and decided |
| parties want the property and start a bidding war, | | | | whether or not to accept it. Don't be surprised if the |
| there are previous offers pending on the home, or you | | | | seller counteroffers. Understand counteroffers are not |
| accept the asking price because the seller will cover | | | | always about the money (although, more often than |
| other costs usually covered by the buyer, like closing | | | | not, it is) it may be in relation to the terms and |
| costs of the mortgage. Keep the following in mind: how | | | | conditions laid out in your offer. You'll have to decide |
| much you can afford, do you have any competition for | | | | where to draw the line, what you are willing to accept |
| the property, why is the seller selling, do you need to | | | | and how much you are willing to pay period. Be |
| spend any more money on repairs or renovation to | | | | prepared to go back and forth until both parties are |
| the home, is the price competitive with the market, and | | | | content (if you dislike negotiating, make sure you have |
| of course...how much do you want the property. | | | | a professional on board). Keep in mind if the seller |
| Placing terms and condition on an offer: | | | | does counteroffer you have the ability to reject the |
| It is important to note that once you place conditions | | | | offer at which point the deal is either off or the seller |
| on an offer they must be met, otherwise you are not | | | | will try to compromise (it is however best to attempt |
| bound to the offer. Common conditions include: your | | | | to find a solution that meets both of your needs; after |
| ability to obtain mortgage financing (this is a must as if | | | | all, if you've placed an offer down to buy a home you |
| left out you stand to lose your deposit). Get a home | | | | must like it enough to be a little flexible). With a bit of |
| inspection and report done on the property, if you don't | | | | luck and perhaps a tweak here and there your offer |
| and miss something like a bad foundation you're in for | | | | will be accepted and both you and the seller will be |
| a nasty and expensive surprise. Once the inspection is | | | | happy. Which means it is time to go back to your |
| complete and you've read the report carefully you can | | | | lender and finalize your mortgage financing That |
| make an informed decision whether you should add | | | | essentially covers how to make an offer, as I have |
| any further conditions or ask the seller to make the | | | | said several times, unless you are a professional make |
| repairs if any. Your real estate agent will help you with | | | | sure you have a licensed pro that can help and guide |
| any other terms or conditions they feel you should add | | | | you through the process (it'll just make everyone's life |
| to your offer. | | | | so much easier). Good luck with your offer and new |
| Putting money down on the property is a sign of good | | | | home. |
| faith and is a way of securing your offer on the home. | | | | |