Making an Offer
Once you find the home that you want, the next step is making an offer on it. You will want to negotiate the best possible price, best possible terms, and you will want to be able to back out of the contract if you find out something is wrong with the home or if you can’t get financing.
The first item to consider is how much to offer. Some factors to think about are the asking price, what you can afford, and what comparable homes are selling for in the area. Familiarize yourself with the current market. If you can, find out why the sellers are selling, how long has the home has been for sale, and if there have been any price reduction. You may be able to use this information to your advantage.
Most contracts have contingencies in them. Some of the common ones include a contingency that you qualify for financing, and that the inspections are satisfactory, or that there is an agreement upon repair limits if defective items are found. If you have a home to sell, even if it is under contract, you may also include a contingency on the sale of your existing home. Keep in mind that the more contingencies that you have, the less likely a seller will be willing to accept your offer.
As the negotiating process begins thing can heat up. Buying and selling a home is very personal for most people, which means feelings get in the way. When a real estate Agent is involved, the process is much less adversarial because they act as the middle man and can smooth things over until both parties come to a meeting of the minds. Good real estate Agents know how to keep personalities out of the transaction and to help both sides reach a mutually agreeable compromise.
It is not uncommon for your initial offer to be rejected, and for the seller to respond with a counteroffer. You can accept the counteroffer, reject it, or counter the counteroffer, and this process continues until an agreement is reached. Don’t get discouraged, this is the normal process.
The objective is for both parties to give and take, and ideally end up with a contract that both sides are happy with.
