The Keys to Making Your First Home Offer

The Keys to Making Your First Home Offer

You’ve been looking online for months, attended every open house in the area and know all of the houses on the market.  And now it’s time. You found the perfect house you love and you are finally ready to make your first home offer.  

While this is an exciting time, it can be a little scary too.  But don’t worry! Use these tips and you will be making a home offer like a real estate pro.

Confidence is Key

The tip for home buyers is that there is never a right answer when it comes to making a  home offer.  You’ve done your homework and know the market.  Now put that knowledge to use and analyze where the home you are interested fits with your assessment.

Research the Specific Listing  

Before you make the home offer, you will want to learn all you can about the listing.  How long the home has been on the market? Are you the only offer? What is the timeline for reviewing offers? Answers to these questions will help you make the right decisions before submitting your offer.  

By learning why the sellers are selling along with what their motivations are, can help you put together an appealing home offer.

Listen to the Comps

Looking at comps are key to making a great home offer.  Real estate professionals can pull the data of what houses in the area that are similar to the house you are looking at have sold for.  

Taking into consideration the comps and current pending sales will give you up-to-date information on the housing market.  From here you can ballpark the value of the home and think about an offer price.

Work with Your Lender

By now you should be on very close terms with your lender. Give the lender a call and let them know you are ready to make a home offer.  Make sure you get a pre-approval letter for the offer you are going to submit and get updated on current mortgage rates.  

If you’ve been searching for the perfect house for some time, the rates could have gone up or down.  Be sure you have all of the current information so you know what you can afford.

Dial in the Terms

Now it is time to discuss the terms.  Once you know the price of the home offer you’ll have to decide on the next steps like an inspection, the closing date, and if you would like an appraisal or a loan contingency.  

Carefully consider these terms because if you are up against a cash offer, they could make or break your deal.  Take all of the above data and come up with the best offer that you are comfortable with.

Even if you submit the best home offer you possible can, there are times that the buyer loses out on the first house they put an offer on. While it might seem like the end of the world, it’s not. There will be other homes for sale. Be patient and learn from your offers. You will be closing on a home you love in no time!