4 Key Tips When Making An Offer on a House

House Model on Real Estate ApplicationYou’ve done your searching, you’ve compared your options, and you believe you’ve found the property you’ve been searching for. Now comes the decision of how much to offer and what terms you wish to negotiate for the sale. A great real estate agent with years of experience will be able to guide you through this process, so I strongly recommend partnering with someone like me who has years of experience reading the psychology and tendencies of sellers.

I am excited to share my top four tips to consider when making an offer on a house, but would encourage you to give me a call at (336) 575-7249 as you approach your next real estate venture to learn even more about how to structure and make a solid offer with a high probability of being accepted. In the meantime, it is important to be aware of a few of the top factors that you need to remember when determining what kind of offer to make.

Home Warranties

Whether a home is new construction or more aged, having peace of mind regarding repairs and other unforeseen challenges with major systems such as heat pumps and AC units is a step that guards your purchase. Home warranties come in a variety of types, from those that cover any appliance and system to those that only cover certain areas of the home. You obviously want the most coverage that you can get, but must balance that with cost. Some homes use warranties as a selling point, but for those that haven’t added this feature it is worth asking the seller to back up the sale by including a warranty with your purchase.

Due Diligence

Even with a warranty, it is important to safeguard your purchase through a series of inspections as you consider your offer. The period in which you are allowed to perform these inspections is often called the ‘due diligence’ period and sellers can request a non-refundable fee to both allow you access and hold the property through this period of inspection. During this period, most agreements allow you to walk away from the purchase process with no penalty except for the nominal fee paid for the inspection period.

Some buyers only think of the traditional home inspection process, but it is also important to have the home inspected for things like radon, termites, structural integrity, and water/sewer issues. You may also want to consider a land survey if the property is a large portion of the purchase decision. Working with an experienced agent like me will help make the most of this period and get you the information you need to make a fair offer.

Closing Costs

Every real estate transaction comes with a series of closing costs that cover filing fees, professional service fees, and other costs inherent to such a large purchase. You may wish to ask the seller to pay the closing costs and/or have them rolled into the total mortgage loan that you plan to take out for the purchase. It is important to consider how much the closing costs will be (usually 3-3.5% of the total purchase price) and how you plan to fund them. Both lenders and REALTORS can help you determine the approximate amount that you need to request from the seller or plan on for closing a sale.

Personal Property

When a home is shown, there are items that are not attached or fixed to the property, but which you may wish to negotiate in the purchase process. Common items include free-standing stoves, refrigerators, and other appliances. It is important to be clear in the contract and offer regarding which items you plan to purchase and which you plan to have the seller take with them. It is also important to look at the listing carefully to see if the seller has already included certain appliances or items in their asking price. Each of these steps will put you in a better negotiating position when determining your offer for the property.

Making the Right Offer on a House is Crucial to your Investment

As purchasing a piece of property is a large investment, it is important to iron out the details of how much you are willing to offer and the terms early in the process. Smooth sales are easiest on both buyers and sellers and they start with great knowledge and perspective. You can gain some of that knowledge from best choice, an experienced Broker/REALTOR like myself who can provide the detailed information you need to plan and achieve success in your purchase.

If you are reading this post, chances are you are in the market for some kind of real estate purchase. So why not give me a call at (336) 575-7249 and let’s have a conversation about how making the right offer can be easy with me as your REALTOR partner.

Posted on December 8, 2015 at 10:07 am
Ellen Dudley | Category: Blog | Tagged ,

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