In your home buying adventure, one of the important steps to take is making an offer for the home. For couple of reasons, buying a home can be stressful mostly when it is your first time. To reduce the stress involved and boost your confident, you have to know the necessary things involved in making an offer. That is the reason this post is focused on 6 tips on How to Make an Offer on a House. By working with the tips provided here on How to Make an Offer on a House you are going to enhance your ability to bargain great deal.
No matter your territory these 6 tips on How to Make an Offer on a House are going to be applicable.
- Scrutinize the contract of sale
Contract of sale is the first thing a real estate property seller will prepare before putting the house for sale. The seller must prepare it and make it available for the prospective buyers and need to review or scrutinize the contract of sale before accepting the offer. In fact, reviewing contract of sale is among the things you need to learn on How to Make an Offer on a House. Some of the things you can find in the contract of sale prepared by a house seller are
- Local Government council zoning certificate
- The property title copy showing exactly how the property is recorded in the office of Land Titles or any name it is called in your state.
- The copies of other documents covering other registered interest on the property.
After inspecting the house ones, you can request to look at the contract of sale prepared by the seller. Make sure you scrutinize the contract of sale alongside your solicitor before pending your signature. This is the first tip on How to Make an Offer on a House as it is just the beginning of everything.
- Things to include in the offer
If your offer is accepted the way it stands it will be regarded as the sales contract binding you and the seller equally called purchase agreement as well as deposit receipt. So, you should learn the things that supposed to be included in the offer on How to Make an Offer on a House. Some of the things that should be included in purchase offer are:
- Legal description of the house or the address of the house
- The sale price
- The term of transaction
- The promise of the seller to offer clear title or proof of ownership
- The targeted closing date
- The deposited amount
- The technique for adjustment of the property rents, taxes and others
- Information on the one that will pay for the insurance of the title, termite inspection, survey and others.
You must make sure that the purchase offer is comprehensive enough to contain all the information needed for the transaction. Remember that anything you miss to put in your purchase offer is not among the binding contract in the transaction. That is why these are listed among the tips on How to Make an Offer on a House.
- The contingencies in purchase offer
Contingency is simply something that may happen. So, you should consider what or the factors your offer is going to be contingent upon while writing your purchase offer. In a purchase offer, there are typically two usually contingencies in it. These are financing and Home inspection. You must need to understand more about contingencies and the things to the offer will be contingent upon when learning How to Make an Offer on a House. In the case of the financing, if you cannot secure loan from the lending institution you hoped for, you will not be bound by the contract. The reason home inspection should be included in the contingency is that it takes 10 days to inspect a house. So, if you do not get satisfactory report from the inspector you can opt out of the contract without being held liable for anything. Contingency important on How to Make an Offer on a House as it can save you from making mistake.
- Price Negotiation
Price negotiation is another tip you should learn about on How to Make an Offer on a House. You can get CMA also know as Comparative Market Analysis of the house you want to buy from a realtor. To see the amount similar houses sold for in the same property you can check realtor.com on the internet. If you think the home requires some fixes you can request for a repair contingencies or price reduction.
- Put down earnest money
Another thing on How to Make an Offer on a House is to put down earnest money. This is simply a deposit you are able to pay base on your offer on the house you want to buy. In fact, without supporting your written offer with earnest money, a seller will be suspicious due to lack of good faith. The Earnest money is always held by either a realtor or even an attorney. The amount of the deposit differs from one area to another. Learning how to make your first deposit after offer is among the things to understand on How to Make an Offer on a House.
- Sellers response to your offer on a house
Still on How to Make an Offer on a House, you must know what to do after your offer receives a reply from a seller. When the seller receives your offer and without any condition attached signed acceptance then, you have a binding contract established. The seller can also send you counteroffer in case there are some things in the offer he want you to change.